Key Highlights
- USD/JPY dipped toward the 148.50 support zone before a minor recovery.
- It cleared a key bearish trend line with resistance at 149.20 on the 4-hour chart.
- EUR/USD failed again to clear the 1.0535 resistance.
- GBP/USD is consolidating gains above the 1.2600 support.
USD/JPY Technical Analysis
The US Dollar extended losses below the 150.00 support zone against the Japanese Yen. USD/JPY traded close to the 148.50 level before the bulls appeared.
Looking at the 4-hour chart, the pair settled below the 151.20 pivot level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It is now attempting a recovery wave above the 149.00 level.
There was a break above a key bearish trend line with resistance at 149.20 on the same chart. On the upside, the pair seems to be facing hurdles near the 150.50 level.
The next major resistance is near the 151.00 level. The main resistance is now forming near the 151.50 zone and the 100 simple moving average (red, 4-hour). 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.
On the downside, immediate support sits near the 149.00 level. The next key support sits near the 148.50 level. Any more losses could send the pair toward the 147.20 level.
Looking at EUR/USD, the pair failed to gain pace for a move above the 1.0535 resistance and corrected some gains.
Upcoming Economic Events:
- US Personal Income for Jan 2025 (MoM) – Forecast +0.3%, versus +0.4% previous.
- US Core Personal Consumption Expenditure for Jan 2025 (MoM) – Forecast +0.3%, versus +0.2% previous.
