Key Highlights
- USD/JPY started a fresh rally above the 154.50 resistance.
- A key bullish trend line is forming with support at 155.80 on the 4-hour chart.
- EUR/USD accelerated losses and traded below the 1.0340 support.
- GBP/USD also declined and traded below the 1.2475 support.
USD/JPY Technical Analysis
The US Dollar formed a base above the 152.00 level against the Japanese Yen. USD/JPY started a fresh surge above the 154.50 and 155.00 resistance levels.
Looking at the 4-hour chart, the pair settled above the 155.50 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even climbed above the 157.50 level before the bears appeared.
A high was formed at 158.08 before there was a short-term downside correction. The price dipped below the 157.50 level. However, it remained stable above the 23.6% Fib retracement level of the upward move from the 148.64 swing high to the 158.08 high.
On the downside, immediate support sits near the 155.80 level and the trend line. The next key support sits near the 154.40 level. Any more losses could send the pair toward the 153.50 level or the 50% Fib retracement level of the upward move from the 148.64 swing high to the 158.08 high.
On the upside, the pair is facing hurdles near the 158.00 level. The first major resistance is near the 158.80 level. The next major resistance is near the 159.20 level.
A close above the 159.20 level could set the tone for another increase. In the stated case, the pair could rise toward the 162.00 resistance.
Looking at EUR/USD, the pair started another decline and traded below the 1.0340 support zone to move further into the red zone.
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