Aayush Jindal
Key Highlights
- USD/JPY started a decent upward move above 157.20.
- A key rising channel is forming with support at 157.65 on the 4-hour chart.
- EUR/USD could extend losses if it settles below 1.1650.
- GBP/USD corrected some gains and might revisit 1.3300.
USD/JPY Technical Analysis
The US Dollar remained supported and recovered above 157.00 against the Japanese Yen. USD/JPY even cleared 157.50 before the bears appeared.
Looking at the 4-hour chart, the pair spiked above the 50% Fib retracement level of the downward move from the 160.72 swing high to the 155.03 low. However, the bears remained active near the 100 simple moving average (red, 4-hour).
If the bears remain in action, the pair could start a fresh decline. The first major support sits near the 157.50 level. There is also a key rising channel forming with support at 157.65.
The next support could be 157.20. A close below 157.20 might initiate a drop to 156.35. Any more losses might open the doors for a drop toward the 155.50 zone. On the upside, the pair faces resistance at 158.20 and the 100 simple moving average (red, 4-hour).
The first major resistance sits at 158.55, the 200 simple moving average (green, 4-hour), and the 61.8% Fib retracement level of the downward move from the 160.72 swing high to the 155.03 low. A close above 158.55 could open doors for gains above 159.00. In the stated case, the bulls could aim for a move to 160.00.
Looking at EUR/USD, the pair remained in a negative zone, and the bears could aim for a clear move below the 1.1600 support.
Upcoming Key Economic Events:
- US Industrial Production for April 2026 (MoM) – Forecast +0.3%, versus -0.5% previous.
- NY Empire State Manufacturing Index for May 2026 – Forecast 7.5, versus 11.0 previous.
