USD/JPY is currently focusing on breaking above the 156.40 resistance level. A significant bearish trendline is forming with resistance at 156.60 on the 4-hour chart. The US Dollar has been showing strength above the 154.50 level against the Japanese Yen. After forming a base, USD/JPY has initiated a fresh increase above 155.00. The pair managed to surpass the 155.80 and 156.00 resistance levels, although it is currently facing resistance from the 100 simple moving average (red, 4-hour). USD/JPY is consolidating near the 200 simple moving average (green, 4-hour), with immediate support around the 155.20 level. The next significant support lies near the 155.00 zone. A breakdown below 155.00 could lead to a more substantial decline, potentially targeting the 154.20 level. On the upside, resistance is at 155.20, with a major resistance zone at 155.40. Furthermore, a significant bearish trendline with resistance at 156.60 poses a challenge. A clear break above 155.60 could propel USD/JPY towards 157.20, with further gains eyeing the 158.00 level.
EUR/USD is gaining momentum above the 1.0880 resistance level. The pair is displaying bullish signs, with potential for a move towards the 1.0950 level in the short term. The bullish sentiment in EUR/USD suggests a positive outlook for the pair, as it continues to advance against the US Dollar. The current market conditions indicate a favorable environment for EUR/USD to extend its uptrend and possibly target higher resistance levels.
Key economic releases, such as the US nonfarm payrolls for May 2024 and the US Unemployment Rate for the same period, are crucial factors that could influence the direction of USD/JPY and EUR/USD. The forecasted figures for nonfarm payrolls stand at 185K, compared to the previous reading of 175K. Similarly, the expected unemployment rate for May 2024 is 3.9%, in line with the previous rate. These economic indicators play a significant role in shaping market expectations and could impact the performance of the US Dollar and the Japanese Yen against the Euro.
The technical analysis of USD/JPY and EUR/USD suggests potential opportunities for traders and investors to capitalize on the current market conditions. With USD/JPY aiming for an upside break and EUR/USD exhibiting bullish momentum, market participants should closely monitor key resistance and support levels to make informed trading decisions. Additionally, keeping an eye on economic releases and forecasts can provide valuable insights into the future direction of these currency pairs.