USD/JPY Hits Main Support Level, US Gross Domestic Product (GDP) Stronger

Key Take-Aways

  • The USD/JPY fell and put a challenge on the crucial 145.00 support level.
  • On the 4-hours chart, a significant negative trend line is developing with resistance close to 147.20.
  • While GBP/USD tried an upward break over 1.1640, EUR/USD topped 1.0000.
  • The US Gross Domestic Product increased from -0.6% to 2.6% in Q3 2022 (Preliminary).

Technical Analysis of USD/JPY

After testing the 152.00 resistance level versus the Japanese Yen, the US Dollar began a significant drop. To enter a short-term negative zone, USD/JPY fell below 150.00 and 149.50.

The pair increased in price below the 148.00 level and the 100 simple moving average, according to the 4-hours chart (red, 4-hours). A recovery wave occurred this past week, but the pair was unable to overcome the 150.00 resistance.

A peak was created close to 149.70 before a new fall began. The 145.00 support area was tested as the pair lost more over 300 pips.

The pair has produced a bottom near 145.10 and is currently consolidating its losses. The 147.00 area is a significant obstacle on the upward. On the same chart, a significant negative trend line is also developing, with resistance located close to 147.20.

The 100 simple moving average or the area around 148.00 may serve as the next significant barrier (red, 4-hours).

Any further gains might lay the stage for a move in the direction of the 150.00 mark.

Near the 145.70 level and the 200 simple moving average is an initial support (green, 4-hours). The area around 145.00 is the next significant support. The pair may move deeper into a bearish zone if the downside breaks below the 145.00 area.

Fundamentally, the US Bureau of Economic Analysis released yesterday the US Gross Domestic Product data for Q3 2022 (preliminary). The market anticipated a 2.4% growth in GDP.

The actual outcome was better than expected, with the US Gross Domestic Product increasing by 2.6% in Q3 2022 after seeing a 0.6% loss the previous quarter.

A move above the 1.0000 barrier was seen in the EUR/USD pair, however the pair appears to be losing bullish momentum and may drop below 0.9950.

Economic News To Trade Today

German Consumer Price Index for October 2022 (MoM) (Prelim): Forecast: +0.6%, up from +1.9% in the previous month.

US Personal Income for September 2022 (MoM) is forecasted to increase by 0.3% from 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.