ACT Markets > Blog > Forex > Technical Analysis > USD/JPY Encounters Resistance Near 134.00, US Employment Release Next

USD/JPY Encounters Resistance Near 134.00, US Employment Release Next

January 6, 2023 Financial Market, Technical Analysis

Key Take-Aways

  • A recovery wave attempt is being made by USD/JPY above the 131.50 resistance area.
  • On the 4-hours chart, a significant negative trend line is developing with resistance close to 133.60.
  • Gold continues to have strong support above the $1,820 pivot point.
  • In December 2022, US nonfarm payrolls may drop from 263K to 200K.

Technical Analysis of USD/JPY

The US dollar’s fall versus the Japanese yen continued below the 132.00 mark. Near 129.50, USD/JPY regained support, and more recently a recovery wave began

On the 4-hour chart, the pair experienced a low of 129.50 before moving upward. The resistance levels of 130.00 and 130.50 were moved above. The pair was able to go over the 50% Fib retracement level of the 134.50 swing high to 129.50 low thanks to the bulls.

The 100 simple moving average (red, 4-hours) and the 200 simple moving average are, however, trading below the pair’s current price.

An initial obstacle on the upward is located close to the 133.20 mark. On the same chart, a significant negative trend line with resistance close to 133.50 is also developing. Near 135.00 may serve as the next significant obstacle.

At 131.00, there is a significant support on the downside. Currently, the primary support is forming close to the 130.00 mark. The pair may move lower if the downside breach occurs below the 130.00 area. Near the 129.50 mark, there is the next significant support. Any additional losses might pave the way for a move in the direction of the 128.00 support region.

When it comes to the price of gold, bulls are trading over $1,820 and $1,810. In the future, the price may begin a new upward trend toward $1,880.

Economic News To Trade Today

  • Forecasted Euro Zone CPI for December 2022 (YoY) (Prelim): +9.7% vs. +10.1% in the prior period.
  • Forecasted Euro Zone CPI for December 2022 (MoM): +0.8% vs. -0.1% in the prior period.
  • Nonfarm payrolls in the US in December 2022 is forecasted at 200k compared to 263K in the past.
  • 6.7% is the predicted US unemployment rate for December 2022.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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