USD/JPY Could Hit 140.00, Dollar Gains Strength

Key Points

  • At 139.39, USD/JPY increased its momentum and hit a new multi-year high
  • The price of gold continued to fall and traded under $1,720
  • Losses are currently being compounded on EUR/USD above parity
  • The price of crude oil surged to $92 and is now recouping losses

USD/JPY Technical Analysis

In relation to the Japanese Yen, the US Dollar began a new rise above the 137.50 resistance level. The USD/JPY exchange rate soared past 138.00 and reached a new multi-year high.

On the four hours chart, the pair has risen above the 139.00 mark, it reached a high of 139.39 and closed significantly above both the 200 SMA (red, four hours) and the 100 SMA (green four hours).

Near the 139.00 area, the pair is now consolidating gains, Near the 138.50 level, there is immediate support on the downside. On the same chart, a significant bullish trend line with support close to 138.50 is also developing.

Suppose there is a downside break, the pair might drop towards the 137.75 support level. Further losses might drive the pair towards the 136.80 level.

On the contrary, the pair is encountering resistance close to the 139.20 zone. The major obstacle is close to the 139.40 level. A move above the 139.40 zone might pave the opportunity for a move towards 140.00. Further gains might create the chance for a move towards the 142.00 resistance.

From EUR/USD, the pair established support close to the parity level and began a rebounding, Likewise, GBP/USD dropped to 1.1800 and presenting recovering losses.

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Francis Idowu is a Forex Dealer, Financial market analyst and writer, Data Analyst, and Financial Market Strategist with a background in Economics. He specializes in market strategies, Forex fundamental and technical analysis, and has spent over two years as a financial market contributor, observer, and trading coach. He is well known for his informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Economics and Diploma in Structured Programming and Data processing.