Key Highlights
- USD/JPY started a fresh increase above the 160.00 resistance.
- A key bullish trend line is forming with support at 160.40 on the 4-hour chart.
- EUR/USD extended losses and traded below 1.1520.
- WTI Crude Oil prices declined below $76.50 and $75.00.
USD/JPY Technical Analysis
The US Dollar remained supported above 158.50 against the Japanese Yen. USD/JPY formed a base and started a fresh increase above 160.00.
Looking at the 4-hour chart, the pair settled above 160.00, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The current price action suggests that the pair could continue to rise.
Immediate resistance might be 161.20. The next major resistance could be 162.00. A close above 162.00 could open the doors for a larger increase. In the stated case, USD/JPY might aim for a test of 165.00.
If there is a downside correction, the pair might find support near 160.55. The first major support could be near a key bullish trend line at 160.40. A downside break and close below the trend line might spark bearish moves.
The main support could be near 160.00 and the 100 simple moving average (red, 4-hour). Any more losses might set the pace for a test of 159.20 and the 200 simple moving average (green, 4-hour).
Looking at EUR/USD, the pair faced an increase and selling pressure and declined below the 1.1520 support.
Upcoming Key Economic Events:
- ECB’s Lane speech.
- ECB’s Cipollone speech.
- ECB’s Elderson speech.
