Key Highlights
- USD/JPY extended losses and traded below the 145.00 level.
- It traded below a key bullish trend line with support at 144.80 on the 4-hour chart.
- EUR/USD is attempting a fresh increase above the 1.1100 resistance.
- Oil prices are consolidating losses near the $69.50 level.
USD/JPY Technical Analysis
The US Dollar failed to climb above the 147.20 level against the Japanese Yen. USD/JPY started another decline below the 146.50 and 146.00 levels.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 144.80. There was a move below the 76.4% Fib retracement level of the upward move from the 143.44 swing low to the 147.20 high.
The pair is now trading well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the downside, immediate support sits near the 143.00 level.
The next key support sits near the 142.50 level. It is close to the 1.236 Fib extension level of the upward move from the 143.44 swing low to the 147.20 high. The main support is now forming near 142.00. A downside break below the 142.00 level could set the pace for a larger decline. The next major support is near the 140.00 level.
On the upside, the pair could face resistance near the 143.80 level. The next key resistance sits near the 144.80 level. A clear move above the 144.80 level could set the pace for a move toward the 100 simple moving average (red, 4-hour) at 145.50. Any more gains might call for a test of the 147.00 zone.
Looking at EUR/USD, the pair found support and recently started a fresh increase above the 1.1100 resistance zone.
Upcoming Economic Events:
- US nonfarm payrolls for August 2024 – Forecast 180K, versus 98K previous.
- US Unemployment Rate for August 2024 – Forecast 4.2%, versus 4.3% previous.
