Key Take-Aways
- A new fall in the USD/JPY began below the 130.00 level.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to 131.00.
- A new advance over the 1.0880 resistance may be the goal for EUR/USD.
- Near $21,000, the price of bitcoin is consolidating gains.
Technical Analysis of USD/JPY
The US Dollar began a new drop against the Japanese Yen from much above 130.00. To enter a bearish zone, USD/JPY traded below the 129.50 support level.
As shown on the 4-hour chart, the pair dropped under the 129.20 mark. Additionally, it fell below the 129.50 mark, the red 4-hour 100 simple moving average, and the 200 simple moving average.
The pair has formed a bottom near 127.24 and is currently consolidating its losses. An initial resistance on the upside is located close to the 129.00 mark.
The 100 simple moving average and the area around 131.00 may serve as the next significant barrier. On the same chart, a significant negative trend line is also developing with resistance close to 131.00.
A definite move above the 131.00 resistance could signal the beginning of a persistent rise. In the aforementioned scenario, USD/JPY might even surpass the 132.00 region. The pair’s next significant obstacle is located close to 133.50; if it is cleared, the 134.80 resistance area may be reached.
At 128.00, there is a significant support for the downside. Near the 127.20 level is the next significant support. The pair may move lower if the downside breaks through the 127.20 area.
Near the 126.50 mark, there is the next significant support. Any additional losses might pave the way for a move in the direction of the 125.00 support area.
If we turn our attention to the EUR/USD pair, we can see that it is trying an upward break over the 1.0880 and 1.0920 resistance levels.
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