Price of USD/JPY Trend Close to Strong Support As US Dollar Gain Slows
- 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.
Author: Amogo Solomon
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