The USD/JPY pair recently reached a new multi-year high at 161.95 before experiencing a correction. It dropped below a key bullish trend line with support at 161.50 on the 4-hour chart. Meanwhile, the EUR/USD pair continued to rise above the 1.0785 resistance zone. Additionally, there is speculation that oil prices could soon attempt to break through the $85.00 resistance level.
In terms of technical analysis, the US Dollar maintained an upward trend against the Japanese Yen, staying above 158.00. The USD/JPY pair surpassed the 160.00 and 161.20 resistance levels, reaching a new multi-year high of 161.95. However, it has since started a downside correction, trading below the 50% Fib retracement level.
Although the pair broke below the key bullish trend line and is currently hovering around the 160.65 level, it remains above the 100 and 200 simple moving averages on the 4-hour chart. The next major support level is around 160.25, with a potential further decline towards 159.20 if the support zone is breached.
On the upside, resistance levels for USD/JPY are at 161.50, 161.80, and the main hurdle at 162.00. A clear break above 162.00 could lead to a push towards 162.75 and potentially even higher levels around 163.50 in the near future.
Looking at the oil market, there is optimism among bulls with the possibility of prices aiming for more gains above the $85.00 resistance zone.
In terms of economic releases, upcoming data includes US nonfarm payrolls for June 2024 with a forecast of 190K compared to the previous 272K, as well as the US Unemployment Rate for June 2024 with a forecast of 4.0%, matching the previous rate.
Overall, the USD/JPY pair is experiencing a correction after reaching a multi-year high, with key support and resistance levels to watch for potential future movements. Additionally, developments in the oil market and upcoming economic data releases could impact trading dynamics in the near term.
