Key Highlights
- USD/JPY found support near 143.50 and corrected some losses.
- It cleared a key bearish trend line with resistance at 144.85 on the 4-hour chart.
- EUR/USD started a downside correction below the 1.1150 level.
- Gold remained stable near $2,500 and might aim for more upsides.
USD/JPY Technical Analysis
The US Dollar remained well-bid near 143.50 against the Japanese Yen. USD/JPY seems to be forming a base for a fresh upward move.
Looking at the 4-hour chart, the pair was able to recover above the 144.00 and 144.20 resistance levels. It cleared a key bearish trend line with resistance at 144.85. The bulls pushed the pair above the 23.6% Fib retracement of the downward move from the 149.32 swing high to the 143.50 low.
On the upside, the pair could face resistance near the 146.40 level and the 100 simple moving average (red, 4-hour). It is close to the 50% Fib retracement of the downward move from the 149.32 swing high to the 143.50 low.
The next key resistance sits near the 147.80 level. A clear move above the 147.80 level could set the pace for a move toward the 148.50 level. Any more gains might call for a test of the 200 simple moving average (green, 4-hour) at 149.80.
On the downside, immediate support sits near the 144.40 level. The next key support sits near the 143.80 level. The main support is now forming near 143.50. A downside break below the 143.50 level could set the pace for a larger decline.
The next major support is near the 141.65 level. Any more losses might send the pair toward the 140.00 support level.
Looking at EUR/USD, the pair failed to climb above 1.1200 and recently started a downside correction below the 1.1150 level.
Economic Releases
- US Personal Income for July 2024 (MoM) – Forecast +0.2%, versus +0.2% previous.
- US Core Personal Consumption Expenditure for July 2024 (MoM) – Forecast +0.2%, versus +0.2% previous.
