The USD/JPY pair has experienced a significant decline, falling below key support levels on the 4-hour chart. The 100 simple moving average and the 200 simple moving average were both breached as the pair dropped below 155.50. Although a recovery wave was initiated, the pair faces strong resistance at the 154.20 level. Further hurdles lie at 155.00 and ultimately at 155.50, where a major bearish trend line has formed. A break above this level could potentially lead to an upward movement towards 156.20. However, failure to break above the resistance may result in a continuation of the downtrend, with immediate support at 152.80 and a critical support at 152.00.
Ethereum Bearish Moves
In addition to the decline in USD/JPY, Ethereum has also seen bearish movements. The cryptocurrency witnessed a sharp drop below the $3,350 support level, signaling a bearish trend. If the selling pressure continues, ETH could potentially test the $3,020 support zone. This downward movement in Ethereum further adds to the overall bearish sentiment in the market.
Economic Outlook
Looking ahead, economic releases such as the US Personal Income for June 2024 and the US Core Personal Consumption Expenditure for the same period will provide further insights into the state of the economy. Forecasts suggest a slight decrease in both indicators compared to the previous month, which could impact the market sentiment. Traders and investors will closely monitor these releases to gauge the health of the US economy and its potential impact on currency pairs and cryptocurrencies.
The technical analysis of USD/JPY and Ethereum indicates a bearish outlook for both assets. While USD/JPY faces resistance at key levels, Ethereum is struggling to maintain its support levels. The overall market sentiment is cautious, with economic releases playing a crucial role in determining the direction of these assets. Traders should exercise caution and closely monitor the developments in both the forex and cryptocurrency markets to make informed decisions.