Key Highlights
- USD/JPY started a fresh increase above the 155.80 resistance.
- It cleared a connecting bearish trend line with resistance at 156.35 on the 4-hour chart.
- EUR/USD started a consolidation phase below the 1.0465 resistance.
- GBP/USD could face hurdles near the 1.2400 and 1.2420 levels.
USD/JPY Technical Analysis
The US Dollar found support at 154.80 against the Japanese Yen. USD/JPY surpassed 155.50 and 155.80 to enter a positive zone.
Looking at the 4-hour chart, the pair was able to clear the 38.2% Fib retracement level of the downward move from the 158.87 swing high to the 154.77 low. It cleared the 200 simple moving average (green, 4-hour) and traded close to the 100 simple moving average (red, 4-hour).
On the upside, the pair seems to be facing hurdles near the 156.80 level. It is close to the 50% Fib retracement level of the downward move from the 158.87 swing high to the 154.77 low.
The next major resistance is near the 157.30 level. A close above the 157.30 level could set the tone for another increase. In the stated case, the pair could even clear the 158.00 resistance.
On the downside, immediate support sits near the 155.80 level. The next key support sits near the 155.50 level. Any more losses could send the pair toward the 155.00 level.
Looking at GBP/USD, the pair started a short-term recovery wave but the bears might remain active near the 1.2400 resistance.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Jan 2025 (Preliminary) – Forecast 45.3, versus 45.1 previous.
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