The recent uptrend in the USD/JPY pair led to a new multi-year high at 161.95, but a correction lower has been observed. The pair traded below a key bullish trend line with support at 161.50 on the 4-hour chart, indicating a potential shift in momentum. The downward correction found immediate support near the 160.65 level and the 76.4% Fib retracement level. However, a break below the 160.25 support zone could lead to further losses towards the 159.20 level and the 100 simple moving average (red, 4-hour). It is essential to monitor these support levels closely to gauge the strength of the current bullish trend.
In contrast to the USD/JPY pair, the EUR/USD has experienced gains above the 1.0785 resistance zone. This breakout indicates a bullish sentiment for the Euro against the US Dollar. Traders should pay attention to potential pullbacks to the resistance turned support level to confirm the validity of the bullish trend. The next resistance levels to watch are near 1.0820 and 1.0850, which could indicate further upside potential for the EUR/USD pair.
Oil prices are poised to test the $85.00 resistance zone as bullish momentum persists. The recent uptrend in oil prices signals a bullish sentiment among traders, with a possible continuation towards higher price levels. Monitoring the price action around the $85.00 resistance zone will provide insight into the strength of the current bullish trend. Traders should watch for a clear breakout above this level to confirm a further upside movement in oil prices.
The upcoming US nonfarm payrolls for June 2024 are forecasted at 190K, compared to the previous figure of 272K. This anticipated drop in job creation could impact market sentiment and lead to increased volatility in the USD currency pairs. Additionally, the US Unemployment Rate for June 2024 is expected to remain at 4.0%, which could influence the Federal Reserve’s monetary policy decisions. Traders should closely monitor these economic releases to anticipate potential market reactions and adjust their trading strategies accordingly.
The recent market developments in the USD/JPY pair, EUR/USD pair, oil prices, and upcoming US economic releases present opportunities for traders to capitalize on potential price movements. By closely monitoring key support and resistance levels, as well as staying informed about relevant economic data, traders can make well-informed trading decisions in the dynamic financial markets.