Price of USD/JPY Trend Close to Strong Support As US Dollar Gain Slows

key Take-Aways

  • Below 132.50, USD/JPY started to correct downward.
  • On the 4-hours chart, a significant bullish trend line is developing with support close to 129.10.
  • GBP/USD and EUR/USD have begun an upward correction.
  • If the $1,900 resistance zone is broken, the price of gold can rise again.

Technical Analysis of USD/JPY

Once more, the US Dollar’s attempt to overcome the Japanese Yen’s 133.00 barrier was unsuccessful. Below the support levels of 132.50 and 132.20, USD/JPY began a new fall.

The pair fell below the 131.50 support level and the 200 simple moving average on the 4-hours chart. A rise from the 128.07 swing low to 132.90 high was also seen below the 50% Fib retracement line.

Near the 130.00 area or the 100 simple moving average is an immediate support. It is close to the 61.8% Fib retracement level of the ascent from the 132.90 high to the 128.07 swing low.

Near the 129.20 level is the next significant support. On the same chart, a significant bullish trend line is also developing, with support located close to 129.10. The pair may fall toward the 128.50 level if there is a downward break.

The pair is encountering resistance near the 131.20 level on the upswing. Near the 131.50 mark, there is the next significant barrier. A definite move over the 131.50 resistance might signal the beginning of a solid climb up to the 132.00 resistance area.

Any additional gains might pave the way for a move in the direction of the 132.50 level. The pair’s next significant obstacle is close to 133.00; if it is cleared, it may move up into the 134.20 resistance area.

In the near future, given the current state of the gold market, the bulls may try to launch a comeback wave over the crucial $1,900 resistance area.

Economic News To Trade Today

  • The unemployment rate for Canada is forecasted at 5.1%, down from 5.0% previous.
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.