USD/JPY Drops From 24-Year Multi-High Price Level, Support Point Closely

Key Take-Aways

  • USD/JPY rose to a fresh 24-year high at 136.70.
  • On the 4-hour chart, a link-up resistance trendline is positioned at 137.00.
  • Gold will likely gain momentum beyond the $1,850 resistance point.
  • EUR/USD will experience a descent increase if it breaks 1.0600.

USD/JPY Technical Analysis

The US Dollar is maintaining ground with a massive gain above 130.00 against the Japanese Yen. USD/JPY pair gained speed beyond the 132.50 resistance and projected higher.

On the 4-hour chart, it smashed the the135.00 resistance area. The pair transacted to a fresh 24-year high at 136.70 and resolved above the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).

Currently, the pair is resolving gains and transacting beneath the 135.50. It further experienced a slight decline below the 38.2% Fib retracement level from 131.48 swings low to 136.70 high.

Furthermore, key support sits close to the 133.6 and the 100 simple moving average (red, 4 hours) on the downside. It correlates with the 61.8% Fib retracement level of the recent move from 131.48 swing low to 136.70 high level.

An instant resistance is close to the 135.50 level on the upside. On the same chart, the key resistance level is close to a connecting resistance trendline at 137.00.

A confirmed ride above the 137.00 level will likely drive the pair higher towards the 140.00 level in no distance time.

For EUR/USD, the pair is integrating beneath the 1.0600 level and will likely target a breakout in the near trading sessions.

Today’s Economic News

  • UK Retail Sales for May 2022 (YoY) – Forecast -4.5%, versus -4.9% previous.
  • UK Retail Sales for May 2022 (MoM) – Forecast -0.7%, versus +1.4% previous.
  • German IFO Business Climate Index for June 2022 – Forecast 92.9, versus 93 previous.

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