USD/JPY Encounters Resistance Prior to The Release of US NFP
- 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.
Author: Amogo Solomon
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