USD/JPY Upside Risks Fade Near 159.60, Bulls Face Key Test

Key Highlights

  • USD/JPY is attempting a fresh increase from the 158.25 zone.
  • A major bearish trend line is forming with resistance at 159.60 on the 4-hour chart.
  • EUR/USD climbed toward 1.1820 before correcting some gains.
  • WTI Crude Oil prices are under pressure below $96.40 and $98.50.

USD/JPY Technical Analysis

The US Dollar found support near 158.25 and started a fresh increase against the Japanese Yen. USD/JPY surpassed 158.80 and 159.20.

Looking at the 4-hour chart, the pair settled above the 158.80 level and the 200 simple moving average (green, 4-hour). There was a clear move above the 50% Fib retracement level of the downward move from the 159.86 swing high to the 158.26 low.

The pair even tested 159.25 and the 100 simple moving average (red, 4-hour). On the upside, the pair faces resistance at 159.50. The first major resistance sits at 159.60. There is also a major bearish trend line forming with resistance at 159.60.

The main resistance could be 159.85. A close above 159.85 could open doors for gains above 160.00. In the stated case, the bulls could aim for a move to 161.20.

Immediate support is seen near 158.85 and the 200 simple moving average (green, 4-hour). The first key support sits at 158.50. The next key area of interest might be near 158.25.

A close below 158.25 might push the pair toward 157.90. Any more losses could initiate a fresh move to 156.50 in the coming days.

Looking at Oil, the price started a consolidation phase, and upside might face resistance near $96.40 and $98.50.

Upcoming Key Economic Events:

  • Fed’s Daly speech.
  • Fed’s Waller speech.

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