- USD/JPY gains momentum for the fourth consecutive day, just below the 144.00 barrier.
- The pair stands above the 50- and 100-hour EMAs with an upward slope.
- The immediate resistance level is seen at 144.65; the initial support level is located at 143.10.
The USD/JPY pair extends its upside for the fourth consecutive day, heading into an early European session on Thursday. The major pair currently trades around 143.95, gaining 0.15% for the day. Market participants await the US Consumer Price Index (CPI) for July for fresh impetus. The US inflation figure is expected to rise from 3% to 3.3%, and the core figure is expected to remain unchanged at 4.8%.
According to the four-hour chart, the USD/JPY pair stands above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope, which means the path of least resistance is to the upside for the major pair.
Any meaningful follow-through buying beyond 144.25 (the upper boundary of the Bollinger Band) could pave the way to the next hurdle at 144.65 (High July 6). The 144.90–145.00 zone will be a tough nut to crack for the USD/JPY pair. The mentioned level is the confluence of a high of June 30 and a psychological round mark.
On the downside, the immediate support level for USD/JPY is located at 143.10, representing the midline of the Bollinger Band en route to 142.65 (50-hour EMA). The additional downside filter is seen at 142.00 (100-hour EMA and the lower limit of the Bollinger Band), and finally at 141.50 (Low of August 7).
It’s worth noting that the Relative Strength Index (RSI) stands around 70 and Moving Average Convergence/Divergence (MACD) stays in bullish territory, which indicates that the upside momentum has been activated for the time being.
USD/JPY four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.