USD/JPY Exposes To Risk of Further Downside, Next Is the Purchasing Manager’s Index

Key Take-Aways

  • Below the 133.50 support area, USD/JPY started to decline once more.
  • A major bearish trend line is forming with resistance at 131.80 on the 4-hours chart.
  • Both the EUR/USD and GBP/USD exchange rates rose above 1.0800 and 1.2220, respectively.
  • The US Manufacturing PMI could decline from 47.3 to 47.0 in March 2023 (Preliminary).

Technical Analysis of USD/JPY

The US dollar started a fresh drop from far above 134.00 against the Japanese Yen. To move into a negative zone, USD/JPY traded below the 133.50 and 133.00.

On the 4-hours chart, the pair dropped below the 132.50 support level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The 131.80 level is the first significant obstacle. In the same chart, a significant negative trend line is also developing with resistance at 131.80. The next significant barrier is located close to 132.20. A clear rise above the 132.20 resistance might drive the pair towards the 133.00 zone.

Any additional gains might push the pair up to 133.50 or possibly 134.00. support lies near the 130.50 on the downside.

Beneath the 130.00 level, there is a possibility of a move toward the 128.80 level or 127.50 in the coming days. The next significant support is close to this level.

For the EURUSD pair, the price increased and even surged above the 1.0800 resistance level.

Economic News To Trade Today

  • The US Manufacturing PMI for March 2023(preliminary) – Forecast 47.0, versus 47.3 previous.
  • The US zone services PMI for March 2023(preliminary) – Forecast 50.5, versus 50.6 previous.
  • The Euro Zone Manufacturing PMI for March 2023(preliminary) – Forecast 49.0, versus 48.5 previous
  • The Euro Zone services PMI for March 2023(preliminary) – Forecast 52.5, versus 52.7 previous
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.