Key Take-Aways
- The USD/JPY reversed upward after finding support around the 130.55 area.
- On the 4-hour chart, it can have trouble close to the 134.00 resistance area.
- In Q3 2022, the US GDP increased by 3.2%, exceeding the market expectation of 2.9%.
- The price of gold fell after failing to overcome the $1,825 barrier.
Technical Analysis of USD/JPY
The 138.00 resistance level versus the Japanese Yen marked the beginning of another drop for the US Dollar. After breaking the 136.80 barrier, USD/JPY sharply fell.
On the 4-hour chart, the pair traded below a significant ascending channel with support located close to 135.00. The 4-hour red 100 simple moving average, 200 simple moving average, and the 135.00 level were all closed below.
The pair’s low point was 130.56. The pair just began an upward correction above the 131.20 mark. Following the publication of the US GDP report, which showed that the economy expanded at a 3.2% annual pace in Q3 2022, beating market expectations.
An initial obstacle on the upswing is located close to the 133.50 mark. Near 135.00 may serve as the next significant obstacle. A definite move above the 134.00 resistance could signal the beginning of a continuous rise.
In the aforementioned scenario, USD/JPY can increase toward the 135.00 level. If the pair climbs any more, it can head for the 100 simple moving average or the resistance zone at 135.50.
On the downside, a strong support is emerging close to the 131.00 area. If the pair falls below the 130.50 zone, they may crash down to the 128.80 level, which is the next significant support. Any additional losses might pave the way for a move in the direction of the 126.50 support region.
When looking at the price of gold, another rejection was seen close to the $1,825 resistance area. It has created space for a move in the direction of $1,780.
Economic News To Trade Today
- US Personal Income for November 2022 (MoM): Forecast +0.2% vs. +0.7% in the prior period.
US orders for durable goods in November 2022.
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