Key Highlights
- USD/JPY declined heavily below the 151.50 support zone.
- A key bearish trend line is forming with resistance at 151.25 on the 4-hour chart.
- EUR/USD is eyeing a fresh move above the 1.0520 resistance zone.
- GBP/USD could soon attempt a move toward the 1.2750 level.
USD/JPY Technical Analysis
The US Dollar started a major decline from well above 154.00 against the Japanese Yen. USD/JPY traded below the 152.50 and 151.50 support levels.
Looking at the 4-hour chart, the pair settled below the 150.50 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even dived below the 150.00 level.
It is now showing many bearish signs. On the downside, immediate support sits near the 149.20 level. The next key support sits near the 148.80 level.
The main support could be 148.00. Any more losses could send the pair toward the 145.00 level. On the upside, the pair seems to be facing hurdles near the 150.50 level. The next major resistance is near the 151.20 level.
There is also a key bearish trend line forming with resistance at 151.25 on the same chart. The main resistance is now forming near the 151.50 zone.
A close above the 151.50 level could set the tone for another increase. In the stated case, the pair could even clear the 152.50 resistance.
Looking at EUR/USD, the pair remained stable above 1.0450 and might aim for more gains above the 1.0520 resistance.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Feb 2025 (Preliminary) – Forecast 47.0, versus 46.6 previous.
- Euro Zone Services PMI for Feb 2025 (Preliminary) – Forecast 51.5, versus 51.3 previous.
- US Manufacturing PMI for Feb 2025 (Preliminary) – Forecast 51.5, versus 51.2 previous.
- US Services PMI for Feb 2025 (Preliminary) – Forecast 53.0, versus 52.9 previous.
