Key Highlights
- USD/JPY regained traction and climbed above the 158.80 zone.
- It cleared a key bearish trend line with resistance at 159.35 on the 4-hour chart.
- EUR/USD started a downside correction and traded below 1.1750.
- GBP/USD started a consolidation phase below the 1.3550 pivot level.
USD/JPY Technical Analysis
The US Dollar remained supported above 158.40 against the Japanese Yen. USD/JPY started a fresh increase above the 158.80 and 159.00 levels.
Looking at the 4-hour chart, the pair settled above the 159.00 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Besides, the pair cleared a key bearish trend line with resistance at 159.35.
On the upside, the pair faces resistance at 160.00 or the 1.236 Fib extension level of the downward move from the 159.53 swing high to the 157.60 low.
The first major resistance sits at 160.20. The main resistance could be 160.50. A close above 160.50 could open doors for gains above 161.20. In the stated case, the bulls could aim for a move to 162.00.
Immediate support is seen near 159.20, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The next support could be 158.50. A close below 158.50 might push the pair toward 158.00. The main support sits at 157.60. Any more losses could initiate a fresh move to 155.00 in the coming days.
Looking at EUR/USD, the pair failed to extend gains and recently corrected lower below the 1.1750 support.
Upcoming Key Economic Events:
- Michigan Consumer Sentiment Index for April 2026 – Forecast 47.6, versus 47.6 previous.
