USD/JPY Eyes Another Drop—Key Support Levels in Focus

Key Highlights

• USD/JPY has struggled to surpass the resistance level of 154.80.
• A significant bearish trend line is developing, indicating resistance at 154.80 on the 4-hour chart.
• The EUR/USD pair is gaining and may test the 1.0520 resistance zone.
• Gold prices are rising again, potentially aiming to exceed the $2,950 mark.

USD/JPY Technical Analysis

The USD started a recovery phase against the Japanese Yen, with the USD/JPY pair moving above the 154.00 level. However, it faced challenges in maintaining upward momentum above the 154.80 resistance, resulting in a downturn.

Analyzing the 4-hour chart, the pair reached a peak of 154.88 and is currently correcting downward. It has slipped below the 153.50 and 153.20 levels and has even dipped below the key 50% Fibonacci retracement level from the upward move that started at the 150.92 swing low and peaked at 154.88.

Currently, the USD/JPY pair is showing bearish indicators as it trades below both the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). Additionally, a notable bearish trend line is forming, with significant resistance positioned at 154.80 on the same chart.

On the downside, immediate support is identified around the 152.40 level, which aligns with the 61.8% Fibonacci retracement of the upward move from 150.92 to 154.88. The subsequent key support level is near 151.80. Should the pair continue its decline, it could head towards the 150.50 level.

On the upside, the pair encounters resistance at approximately 153.80, with the next major hurdle being around the 154.50 level. The main resistance zone is firmly established near 154.80. A sustained close above this level may suggest the opportunity for further gains, potentially enabling the pair to reach above the 155.50 resistance threshold.

In the broader market context, the EUR/USD pair remains stable and could target additional gains above the 1.0500 level in the near term.

Upcoming Economic Events:

• US Retail Sales for January 2025 (MoM) – Forecast: -0.1%, compared to +0.4% previously reported.

USD, JPY, support