Key Take-Aways
- From the 130.40 region, USD/JPY began to rebound.
- A significant resistance is in its path between 134.00 and 134.20 on the 4-hour chart.
- Under the support level of $92.50, the price of crude oil is trending downward.
- In July 2022, US nonfarm payrolls might rise by 250K.
Technical Analysis of USD/JPY
When compared to the Japanese Yen, the US Dollar fell sharply below the 135.00 support. Before there was an upward correction, USD/JPY went as low as 130.42.
The pair has positioned itself considerably below the 135.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart (green, 4-hours).
From the 130.42 low, the pair began a rebound wave, and it surpassed the 132.50 resistance area. The pair broke below the 38.2% Fib retracement barrier of the decline from the swing high of 137.46 to the low of 130.42.
The 50 percent Fib retracement level of the decline from the 137.46 swing high to the 130.42 low is currently being challenged by USD/JPY.
The pair could move higher if it can clear the next significant obstacle, which is close to the 134.50 mark. In the aforementioned scenario, the pair may advance in the near term toward the 136.00 resistance region.
On the other hand, if the USD/JPY pair breaks below the 132.50 support level, a new fall may begin. Near the 132.20 level is the first significant support. Any additional losses might push the pair closer to the 131.20 area.
When looking at the price of crude oil, a significant drop occurred below the $95.00 and $92.50 support levels. Even trading below the $90.00 mark, the price appears to be headed in the direction of $85.00.
Economic News to Trade Today
- US Non-farm Payroll for July 2022 is forecasted at 250K
- The US Unemployment Rate for July 2022 is forecasted at 6%, down from the previous 3.6%.
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