USD/JPY Hits New Six-Year High, 120 Presents Resistance

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Keys

  • USD / JPY started major growth after breaking the 115.00 resistance.
  • A major bullish trend line is forming with support near 118.40 on the 4-hour chart.
  • EUR / USD could gain speed if it releases 1.1080, and GBP / USD has failed to surpass 1.3200.
  • The BoE raises interest rates to 0.75%, following the Fed’s rise of 0.25%.

USD / JPY Technical Analysis

The US dollar formed a support base above 114.50 against the Japanese yen. USD / JPY started strong growth and broke many obstacles near 116.50.

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Looking at the 4-hour chart, the pair gained bullish momentum above the 117.00 resistance. The pair was even settling above the 118.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

A new six-year high formed near 119.12. The pair is now consolidating gains above 118.50. There is also a major bullish trend line forming with support near 118.40 on the same chart. If the pair corrects below the trend line, it could test the 118.00 support.

Conversely, it could continue to rise above the 119.20 level. The next key resistance is near the 119.50 level above which USD / JPY could test the key 120.00 resistance zone soon.

Looking at EUR / USD, the pair may soon be trying to gain speed above 1.1080 and 1.1100. In addition, GBP / USD stung to test the key 1.3200 resistance zone.

Economic Editions

  • US Existing Home Sales for Feb 2022 (MoM) – Forecast -1.0%, versus + 6.7% previous.
  • Canadian Retail Sales for Jan 2022 (MoM) – Forecast 2.4%, versus -1.8% previous.
  • Canadian Retail Sales Ex-Cars for Jan 2022 (MoM) – Forecast + 2.4%, versus -2.5% previous.

Source

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