Key Highlights
- USD/JPY started a fresh decline below the 146.50 level.
- A connecting bearish trend line is forming with resistance at 148.20 on the 4-hour chart.
- GBP/USD is again rising and might aim for gains above 1.3000.
- Gold prices could rally further and to a new record high above $3,150 level.
USD/JPY Technical Analysis
The US Dollar faced a strong rejection near 148.25 against the Japanese Yen. USD/JPY started a fresh decline below the 147.20 and 146.50 levels.
Looking at the 4-hour chart, the pair traded below the 50% Fib retracement level of the upward move from the 143.99 swing low to the 148.28 high. The pair is now below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
There is also a connecting bearish trend line forming with resistance at 148.20 on the same chart. If there is a fresh increase, the pair could face resistance near the 146.00 level.
The next major resistance is near the 146.50 level. The main resistance is now forming near the 148.20 zone. A close above the 148.20 level could set the tone for another increase. In the stated case, the pair could even clear the 149.50 resistance.
On the downside, immediate support sits near the 144.00 level. The next key support sits near the 143.65 level. Any more losses could send the pair toward the 142.50 level.
Looking at Gold, the price started a fresh increase, and the bulls might soon aim for a move toward the $3,200 level.
Upcoming Economic Events:
- US Producer Price Index for March 2025 (MoM) – Forecast +0.2%, versus 0% previous.
- US Producer Price Index for March 2025 (YoY) – Forecast +3.3%, versus +3.2% previous.
- Michigan Consumer Sentiment Index for April 2025 (Prelim) – Forecast 54.5, versus 57.0 previous.
