Key Highlights
- USD/JPY started a fresh increase above the 146.00 resistance.
- A major bearish trend line is forming with resistance at 150.00 on the 4-hour chart.
- Gold prices could again aim for a move above the $2,480 resistance.
- EUR/USD surged toward the 1.1040 level before the bears emerged.
USD/JPY Technical Analysis
The US Dollar started a fresh upward move above the 144.50 and 145.00 levels against the Japanese Yen. USD/JPY cleared the 146.50 level to enter a positive zone.
Looking at the 4-hour chart, the pair climbed above the 50% Fib retracement of the downward move from the 155.21 swing high to the 141.68 low. The pair showed positive signs and cleared the 148.00 resistance.
However, the pair is now facing many hurdles on the upside. The first key resistance sits near the 149.20 zone and the 100 simple moving average (red, 4-hour).
There is also a major bearish trend line forming with resistance at 150.00 on the same chart. The trend line is near the 61.8% Fib retracement of the downward move from the 155.21 swing high to the 141.68 low.
A clear move above the trend line might send the pair higher toward the 152.00 resistance or the 200 simple moving average (green, 4-hour).
Any more gains could send the pair toward the 155.00 level. Immediate support is near the 147.50 level. The next major support is near the 146.80 level. A downside break and close below the 146.80 support zone could open the doors for more losses. In the stated case, USD/JPY might decline toward the 145.50 level.
Looking at Gold, the price started a fresh increase and there are chances that the bulls might aim for a move above the $2,480 level.
Economic Releases
- US Housing Starts for July 2024 (MoM) – Forecast 1.330M, versus 1.353M previous.
- US Building Permits for July 2024 (MoM) – Forecast 1.430M, versus 1.454M previous.
