USD/JPY Declines, Gold Could Gain In Near Term
- A downward correction in the USD/JPY began from the 145.90 high.
- On the 4-hour chart, it broke a significant bullish trend line at 143.75.
- The price of gold is slowly settling below the $1,700 resistance level.
- In September 2022, the US Manufacturing PMI could fall from 51.5 to 51.1. (Preliminary).
Technical Analysis of USD/JPY
Against the Japanese Yen, the US Dollar maintained its positive territory over the 142.00 mark. Before the bears showed up, USD/JPY moved to a fresh multi-year high at 145.90.
The pair started a negative correction from the 145.90 high, according to the 4-hour chart. Below the 145.00 and 144.00 levels, there was a significant drop. In addition, with support around 143.75, the pair dropped below a significant bullish trend line.
Below both the 142.50 level and the 100 simple moving average, there was a decline (red, 4-hours). The pair, however, continued to trade above both the 200 simple moving average and the 139.00 support level (green, 4-hours).
An initial resistance on the upswing is located close to the 142.50 area. The first significant barrier is located close to 143.15. A definite advance above the 143.15 mark would pave the way for another rise to 144.00. Any additional advances might push the pair closer to the 145.00 mark.
On the downside, a first support is located close to the 141.25 mark. The 140.00 level serves as the main support. The pair may move toward the 139.00 level if the downside breaks below the 140.00 zone. If the pair drops below the 138.40 level, they may potentially target the 136.50 level as the next significant support.
Looking at the price of gold, the metal continues to encounter significant resistance below the $1,700 mark and faces the possibility of further loss.
Economic News To Trade Today
- The forecasted Euro Zone Manufacturing PMI for September 2022 is 48.7, down from the previous reading of 49.6.
- Forecast 51.1 for The US Manufacturing PMI for September 2022, Forecasted at 51.1, down from the previous value of 51.5.
Author: Amogo Solomon
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