The US Dollars Appreciated Against The USD/JPY, Next is Purchasing Manager’s Index

Key Take-Aways

  • A consolidation phase for the USD/JPY began above the 134.50 mark.
  • On the 4-hours chart, a crucial negative trend line is developing with resistance close to 137.15.
  • The EUR/USD currency pair continued to rise above the 1.0680 resistance level.
  • Interest rates were increased by the Bank of England from 3% to 3.5%.

Technical Analysis of USD/JPY

After settling below the 142.00 level, the US Dollar started to continue downward. Even below the 140.00 support level, the USD/JPY fell and entered a bearish zone.

The pair has positioned itself considerably below the 140.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart (green, 4-hours).

A decline below the 136.50 support level also occurred. Before an upward correction, the most recent low was recorded near 134.51. Overcoming the 135.80 resistance area, the pair corrected. However, the 137.20 zone is a busy area for bear activity.

On the same chart, a significant negative trend line with resistance close to 137.15 is also developing. Near 137.50 may serve as the next significant resistance. A definite move above the 137.50 resistance could signal the beginning of a persistent rise.

Failure to do so could result in another fall below the 135.50 support. Near the 134.50 zone is the next significant support. The pair may move toward the 133.80 support area if there are any additional losses.

When looking at EUR/USD, the pair continued to rise over the resistance of 1.0680, and more gains seem likely.

Economic Release To Trade Today

  • Forecast 46.3 for the UK Manufacturing PMI for November 2022, down from the previous reading of 46.5.
  • Forecast 47.1 for the Euro Zone Manufacturing PMI for November 2022 (Preliminary), up from the previous 47.1.
  • Forecast 48.5 for the Euro Zone Services PMI for November 2022 (Preliminary), down from the previous 48.5.
  • Forecast 47.1 for the Euro Zone Manufacturing PMI for November 2022 (Preliminary), up from the previous 47.1.

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.