USD/JPY Encounters Resistance Prior to The Release of US NFP

Key Take-Aways

  • Resistance for USD/JPY is present between 148.50 and 149.00.
  • On the 4-hours chart, a significant negative trend line is developing with resistance close to 148.40.
  • Below 0.9850 and 1.1320, respectively, the EUR/USD and GBP/USD both experienced a decline in price momentum.
  • In October 2022, US nonfarm payrolls might rise by 200K, down from 263K.

Technical Analysis of USD/JPY

From the 145.50 support region, the US Dollar made an additional attempt to rise against the Japanese Yen. The USD/JPY rose above 146.50, however it encountered many difficulties.

The 100 simple moving average (red, 4-hours) and the 200 simple moving average were both above the 147.00 mark on the 4-hours chart (green, 4-hours).

The 148.50 zone, though, was where the bears were active. On the same chart, a significant negative trend line is also developing, with resistance located close to 148.40. More gains may be possible if there is a clear move over the trend line resistance.

Near 149.50 may serve as the next significant resistance. Any further gains might lay the stage for a move in the direction of the 151.20 mark, over which it might even try to reach 152.00.

The 147.00 level serves as a temporary support. The area around 146.50 is the next significant support. The 200 simple moving average, or the 145.50 zone, serves as the primary support (green, 4-hours).

Three times, the indicated 145.50 support served as a solid barrier to stop declines. Therefore, a closing below the 200 simple moving average (green, 4-hours) and the 145.50 level could intensify selling pressure. In the described scenario, it might fall to the 142.00 support.

Taking a look at EUR/USD, the pair developed a negative trend below the 0.9850 level of support. GBP/USD also dropped below the 1.1320 level of support.

Economic News To Trade Today

  • Forecast for US nonfarm payrolls in October 2022: 200K, down from 263K in the past.
  • Forecast 3.6% US unemployment rate for October 2022, up from 3.5% in the past.
  • Payroll changes in Canada for October 2022 are predicted to be 10K, down from 21.1K in the past.
  • Forecast 5.3% unemployment in Canada in October 2022, up from 5.2% in the previous month.
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.