USD/JPY Drops Beneath The 138 Support, US Job Market Report Next
- USD/JPY plunged precipitously and traded under the 138.00 level of support.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to 137.80.
- Bullish momentum increased as the EUR/USD and GBP/USD moved to new multi-week highs.
- In November 2022, US nonfarm payrolls might rise by 200K, down from 251K.
Technical Analysis of USD/JPY
When compared to the Japanese Yen, the US Dollar encountered a high selling demand around the 140.00 level. USD/JPY began to fall quickly and traded below the 138.00 level of support.
The pair fell below the 138.00 area, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart (green, 4-hours).
Below the 136.50 mark, the drop accelerated and the pair even spiked below 136.00. Below the 135.20 mark, the pair is still at risk of further losses due to its bearish indicators. A first level of support is close to the 135.00 mark.
The area around 134.00 is the next significant support. The pair may move toward the 132.50 support area if there are any additional losses.
Currently, it is targeting resistance near the 137.50 level on the upswing. On the same chart, a significant negative trend line with resistance near 137.80 is also developing.
A definite ascent over the trend line resistance and 138.00 may signal the beginning of a respectable gain. In the scenario described, the USD/JPY pair might test 138.80. Any further gains might pave the stage for a move in the direction of the 140.00 resistance region.
When looking at the EUR/USD pair, the price started to rise again and was able to break over the 1.0450 resistance region. Similar to how it did, GBP/USD accelerated and overcame the 1.2150 resistance.
Economic News To Trade Today
- US nonfarm payrolls for November 2022 are expected to be 200K, down from 251K in the past.
- Forecasted US unemployment rate for November 2022 is 3.7%, up from the previous 3.7%.
- Forecast 5.3% unemployment in Canada in November 2022, up from 5.2% in the previous month.
Author: Amogo Solomon
- The New Zealand Dollars (NZD) Now In Focus As The RBNZ Is Set To Hike its Official Cash Rate Further
- DXY BREAKS OUT OF THE DAILY DEMAND – Strong Enough to Start a Bull Market?
- CURRENCY QUAKE: BRICS Alliance Sends Shockwaves Through US Dollar – Will the Retail Sales Say Otherwise?
- CADCHF COOKING A MASSIVE RALLY – The CXY Approaching H4 Demand.
- GOLD BECOMES INDECISIVE – DXY Stuck in Demand Zone.