USD/JPY Will Likely Extend Lower, Gold Price Recovers Slightly
- From 139.40, USD/JPY started to correct downward.
- On the 4-hours chart, it is up against resistance at 138.80 and 139.00.
- GBP/USD failed to surpass 1.2040, and EUR/USD is battling near 1.0280.
- Price of Gold projected
Technical Analysis of USD/JPY
Prior to making a lower correction, the US Dollar reached a new multi-year high against the Japanese Yen at 139.39. Currently, USDJP is trading below 139.00, and it is indicating signals of a downward correction. It lost ground and plunged below $1,700.
The pair briefly fell below the 138.00 level on the 4-hours chart, but it still managed to hold above both the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
It transacted at a low price of 137.38 and is now consolidating around 138.50. The pair is currently running into resistance near the 138.80 level on the upswing. Near 139.00 is the next significant resistance. The pair could increase in price toward 140.00 if there is an upward break.
Near the 141.20 mark, which would be the pair’s next significant resistance, might be a rally to 142.00. The pair could correct lower and dip below 137.80 if there is no upside break.
The next significant support level is 137.40, below which the pair may start to fall again. In the aforementioned scenario, the pair might fall below the 136.50 level.
Before the bulls took control of the gold price, there was a precipitous drop below the $1,700 mark. On the plus side, the bears may continue to trade close to $1,720 or $1,725.
Economic Statements to Trade Today
Manufacturing PMI for Germany in July 2022 (Preliminary) – Forecast 50.6, down from 52.0 Previous.
Services PMI for Germany in July 2022 (Preliminary): Forecast 51.2, down from 52.4 in the previous month.
The Euro Zone Manufacturing PMI for July 2022 (Preliminary): Forecast 51.0 (Preliminary), down from the previous 52.1.
The Euro Zone Services PMI for July 2022 (preliminary): Forecast 52.0 down from the previous value of 53.0.
The UK Manufacturing PMI for July 2022: Forecast 52.0 down from the previous reading of 52.8.
Author: Amogo Solomon
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