07.10.2022
Chicago 12, Melborne City, USA
Politics

USD/JPY Dips As Bulls Take Breather, Gold Consolidates

Key Highlights:

  • USD/JPY started a downside correction from the 145.90 high.
  • It broke a major bullish trend line at 143.75 on the 4-hour chart.
  • Gold price is still consolidating below the $1,700 resistance zone.
  • The US Manufacturing PMI could decline from 51.5 to 51.1 in Sep 2022 (Preliminary).

USD/JPY Technical Analysis:

The US Dollar remained in a positive zone above the 142.00 level against the Japanese Yen. USD/JPY traded to a new multi-year high at 145.90 before the bears appeared.

Looking at the 4-hour chart, the pair started a downside correction from the 145.90 high. There was a sharp decline below the 145.00 and 144.00 levels. Besides, the pair traded below a major bullish trend line with support at 143.75.

There was a drop below the 142.50 level and the 100 simple moving average (red, 4-hours). However, the pair remained well above the 139.00 support and the 200 simple moving average (green, 4-hours).

On the upside, an initial resistance sits near the 142.50 zone. The first major resistance is near the 143.15. A clear move above the 143.15 level could open the doors for a fresh increase to 144.00. Any more gains might send the pair towards the 145.00 level.

On the downside, an initial support is near the 141.25 level. The main support sits at the 140.00 level. A downside break below the 140.00 zone might send the pair towards the 139.00 level. The next major support is near the 138.40 level, below which the pair could even test the 136.50 level.

Looking at gold price, the price is still facing a strong resistance below the $1,700 level and remains at a risk of a fresh decline.

Economic Releases:

  • Germany’s Manufacturing PMI for Sep 2022 (Preliminary) – Forecast 48.3, versus 49.1 previous.
  • Germany’s Services PMI for Sep 2022 (Preliminary) – Forecast 47.2, versus 47.7 previous.
  • Euro Zone Manufacturing PMI for Sep 2022 (Preliminary) – Forecast 48.7, versus 49.6 previously.
  • Euro Zone Services PMI for Sep 2022 (Preliminary) – Forecast 49.0, versus 49.8 previous.
  • UK Manufacturing PMI for Sep 2022 (Preliminary) – Forecast 47.5, versus 47.3 previous.
  • UK Services PMI for Sep 2022 (Preliminary) – Forecast 50.0, versus 50.9 previous.
  • US Manufacturing PMI for Sep 2022 (Preliminary) – Forecast 51.1, versus 51.5 previous.
  • US Services PMI for Sep 2022 (Preliminary) – Forecast 45.0, versus 43.7 previous.

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