Key Highlights
- USD/JPY started a fresh increase above 158.80 and 159.00.
- A bullish trend line is forming with support at 159.00 on the 4-hour chart.
- EUR/USD failed to clear the 1.1620 resistance zone and trimmed gains.
- Gold prices are again moving lower and might revisit $4,200.
USD/JPY Technical Analysis
The US Dollar remained supported above 158.00 against the Japanese Yen. USD/JPY regained traction and climbed above 158.80.
Looking at the 4-hour chart, the pair settled well above 158.80, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair cleared the 76.4% Fib retracement level of the downward move from the 159.65 swing high to the 158.01 low.
On the upside, the pair is now facing sellers near 159.80. The first major resistance sits at 160.00 or the 1.236 Fib extension level of the downward move from the 159.65 swing high to the 158.01 low.
A close above 160.00 could open the doors for gains above 160.80. In the stated case, the bulls could aim for a move to 162.00.
If there is no upside break above 160.00, the pair might start a fresh decline. Immediate support is seen near 159.00. The first key support sits at 158.80. A close below 158.80 might call for heavy losses. In the stated case, it could even revisit 157.50 in the coming days.
Looking at Gold, the price is signaling a fresh decline, and there are chances of a drop toward the $4,200 level.
Upcoming Key Economic Events:
- Fed’s Barkin speech.
- Fed’s Daly speech.
- Fed’s Paulson speech.
