key Take-Aways
- After breaking the 145.50 support level, USD/JPY experienced a sharp fall.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to 143.80.
- Both the EUR/USD and GBP/USD started to adjust downward.
- If the price of oil closes below $82.65 it could plunge.
Technical Analysis of USD/JPY
The US Dollar’s significant drop versus the Japanese Yen began well above the 148.00 mark. Below the 146.50 and 145.50 support levels, USD/JPY fell.
On the 4-hours chart, below the 143.80 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average, the pair began to trend lower (green, 4-hours).
Even below 140.00, the pair was pushed lower by the bears. It recently dropped as low as 137.66 and is now recouping losses. Above the 140.00 mark, there was a slight gain. The price of the pair increased above the 23.6% Fib retracement level of the decline from the swing high of 148.85 to low of 137.66.
An immediate upward resistance is located close to the 141.50 level. Near 142.000 may serve as the next significant resistance. Any further gains might pave the stage for a move in the direction of the 143.80 resistance region.
On the same chart, a significant negative trend line is also developing, with resistance located near 143.80, above which it might even touch 145.00.
The 139.20 mark serves as a temporary support. The 138.80 zone serves as the next significant support. At 138.00, the major support is located. A closure below the 138.00 mark could signal the beginning of a new, severe fall. In the hypothetical scenario, the USD/JPY pair might fall near the 135.00 support.
There was a negative extension in the oil price below the $85.50 mark, and further losses are possible in the near future.
Economic News To Trade Today
- Forecast UK Retail Sales for October 2022 (YoY): -6.5%, up from -6.9% previous.
- US Existing Home Sales for October 2022 (MoM): Forecast -0.1%, down from -1.5% previous
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