Key Highlights
- USD/JPY started a fresh decline below the 145.00 level.
- A short-term contracting triangle is forming with resistance at 143.10 on the 4-hour chart.
- EUR/USD could aim for a move above the 1.1420 resistance zone.
- Gold prices traded to a new record high above $3,350 and started a consolidation phase.
USD/JPY Technical Analysis
The US Dollar failed to start a recovery wave and extended losses against the Japanese Yen. USD/JPY traded below the 145.00 support to enter a bearish zone.
Looking at the 4-hour chart, the pair settled well below the 144.20 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even declined below the 142.50 support.
A low was formed at 141.62 and the pair is now consolidating losses. If there is a fresh increase, the pair could face resistance near the 143.10 level. There is also a short-term contracting triangle forming with resistance at 143.10 on the same chart.
The next major resistance is near the 143.50 level. The main resistance is now forming near the 144.20 zone. A close above the 144.20 level could set the tone for another increase. In the stated case, the pair could even clear the 145.00 resistance.
On the downside, immediate support sits near the 141.50 level. The next key support sits near the 140.80 level. Any more losses could send the pair toward the 140.00 level.
Looking at Gold, the price rallied to a new record high above $3,350 and now the bulls might soon aim for a move toward the $3,400 level.
Upcoming Economic Events:
- Fed’s Daly speech.
