Aayush Jindal
Key Highlights
- USD/JPY started a fresh increase after it cleared the 155.50 resistance.
- A bullish trend line is forming with support at 158.20 on the 4-hour chart.
- EUR/USD declined heavily and traded below 1.1400.
- Gold prices could slip further if there is a close below $4,220.
USD/JPY Technical Analysis
The US Dollar remained supported above 154.20 against the Japanese Yen. USD/JPY settled above 155.00 and 155.50 to start a fresh increase.
Looking at the 4-hour chart, the pair settled above 157.40, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bulls were able to push the pair above the 61.8% Fib retracement level of the downward move from the 160.39 swing high to the 152.88 low.
If the bulls remain in action, the pair could rise and test the 159.40 resistance. The next major hurdle might be near the 160.00 handle.
The main resistance could be 160.40. A close above 160.40 could start another steady increase. In the stated case, the bulls could aim for a move to 162.50. If there is a correction or pullback, the pair could test a bullish trend line with support at 158.20.
The first major support could be near 157.50 and the 200 simple moving average (green, 4-hour). A close below 157.50 might accelerate the decline. In the stated case, the bears could aim for a move to 155.80 or the 100 simple moving average (red, 4-hour).
Looking at EUR/USD, the bears remained in action, pushed the pair below 1.1400, and they do not seem to be losing momentum.
Upcoming Key Economic Events:
- US Durable Goods Orders for August 2026 – Forecast -0.4% versus +1.1% previous.
- Michigan Consumer Sentiment Index for Sep 2026 – Forecast 47.6, versus 47.8 previous.
