The USD/JPY pair has shown strength by breaking through the 158.20 resistance level. This has allowed the pair to rise towards the 159.20 resistance area, with the potential to reach the 160.00 level. The technical indicators, such as the 100 and 200 simple moving averages, are supporting this bullish movement. However, it is essential to keep an eye on the 159.50 resistance level, as a clear move above this may signal a further upward momentum. On the downside, the 158.20 level is acting as immediate support, followed by a major bullish trend line at the same level. If the pair fails to hold above these levels, it could indicate a larger decline towards the 157.20 level.
In contrast to the USD/JPY pair, the EUR/USD is facing challenges in surpassing the 1.0765 resistance zone. Despite correcting some of its losses, the bulls are struggling to make a decisive move above this level. The upcoming economic releases, especially the Euro Zone Manufacturing and Services PMI data for July 2024, will play a crucial role in determining the direction of the pair. Traders will closely monitor these figures to gauge the strength of the Euro against the US Dollar.
Various economic releases from different countries, including Germany, the Euro Zone, the UK, and the US, are scheduled for July 2024. The manufacturing and services PMI data will provide insights into the health of these economies and their respective currency pairs. For instance, Germany’s Manufacturing PMI is expected to increase to 46.4, while the US Manufacturing PMI is forecasted to decline from 51.3 to 51.0. These figures will influence the market sentiment and trading decisions of investors.
The currency pairs like USD/JPY and EUR/USD are facing distinct challenges and opportunities based on technical analysis and upcoming economic releases. Traders and investors need to carefully analyze the market conditions, economic data, and technical indicators to make informed decisions about their trading strategies. The volatility in the forex market can provide lucrative opportunities, but it also requires a high level of risk management and decision-making skills. By staying informed and adapting to the changing market dynamics, traders can navigate the currency pairs effectively and capitalize on profitable opportunities.