Key points
- USD/JPY started a downward correction from the 150.80 resistance.
- There is a major ascending channel forming with support at 149.25 on the 4-hour chart.
- The price of gold fell below $2,000 before starting a recovery wave.
- Bitcoin price extended its rally above the $52,200 resistance.
USD/JPY Technical Analysis
The US dollar remained in a positive zone above 148.00 against the Japanese yen. USD/JPY accelerated higher and even broke the 150.00 level before the bears emerged.
Looking at the 4-hour chart, the pair traded as high as 150.88 before a pullback occurred. The pair fell below the 150.20 level. There was an increase towards the 38.2% Fibonacci retracement level of the upward move from the low of 147.63 to the high of 150.88.
Immediate support is near the 149.65 level. The first major support is located near the 149.25 level. There is also a major ascending channel forming with support at 149.25 on the same chart. The channel is near the 50% retracement level of the upward move from the low of 147.63 to the high of 150.88.
The next major support lies at 148.40, below which the pair could gain bearish momentum. In the given case, the pair could even revisit the 146.80 support level.
On the upside, the bulls face obstacles near the 150.50 level. The next key resistance is near the 150.80 area. A close above the 150.80 area could open the door to more upside. The next stop for the bulls could be 151.50. Any further gains could send USD/JPY towards 152.00.
As for Bitcoin, the bulls remained in action and pushed the price above $52,200. Ethereum, Solana and other altcoins also extended their gains.
Economic Announcements
- US Producer Price Index for January 2024 (monthly): 0.1% forecast, up from -0.2% previously.
- US Producer Price Index for January 2024 (YoY): Forecast +0.6%, up from +1.0% previously.
