Key Take-Aways
- Above the 134.00 resistance, USD/JPY began to rise once more.
- A significant bearish trend line was broken at 134.10 on the 4-hour chart.
- Below the 1.0200 barrier level, EUR/USD is having difficulty.
- GBP/USD continued to fall and surged below 1.2020.
Technical Analysis of USD/JPY
The US Dollar started a new rise against the Japanese Yen after establishing a base above the 131.50 mark. The USD/JPY pair moved into a bullish zone after breaking through resistance around 133.20 and 133.50.
The pair managed to stabilize above the 134.00 resistance and the 100 simple moving average on the 4-hours chart (red, 4-hours). At 134.10, a significant bearish trend line was also broken.
The pair crossed over the 50% Fib retracement level of the decline from the swing high of 138.87 to the low of 130.39. It is currently displaying promising traits above the 134.50 mark. The pair encounters resistance near the 135.65 level and the 200 simple moving average on the upswing (green, 4-hours).
Near the 136.85 level comes the next significant obstacle. It is close to the level of the 76.4% Fib retracement of the decline from the 138.87 swing high to the 130.39 low.
The pair may advance higher toward the 138.00 level if there is a clean move above the 136.85 barrier. It will likely move higher if they can break above 138.80, the next significant obstacle. In the aforementioned scenario, the pair may increase in the near term toward the 139.50 resistance region.
A strong support is emerging on the downside close to the 134.50 level. The current primary support is forming close to the 134.00 mark. If the pair breaks to the downside below the 134.00 support, it could enter a bearish zone.
With regard to the EUR/USD pair, losses may be extended in the near future as the price is still in a bearish area below the 1.0200 mark.
The pair may advance higher toward the 138.00 level if there is a clean move above the 136.85 barrier. It will likely move higher if they can break above 138.80, the next significant obstacle. In the aforementioned scenario, the pair may increase in the near term toward the 139.50 resistance region.
A strong support is emerging on the downside close to the 134.50 level. The current primary support is forming close to the 134.00 mark. If the pair breaks to the downside below the 134.00 support, it could enter a bearish zone.
With regard to the EUR/USD pair, losses may be extended in the near future as the price is still in a bearish area below the 1.0200 mark.
Economic News to Trade Today
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