The USD/JPY pair has been struggling to break above the 145.00 resistance zone and has now started to decline. A major bearish trend line is forming with resistance at 144.00 on the 4-hour chart, indicating that the bears are in control.
Looking at the technical indicators, the pair has settled below the 144.00 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours). In addition, there was a clear move below the 143.20 support zone.
The bears have also managed to push the pair below the 50% Fibonacci retracement level of the upward move from the 140.95 swing low to the 144.95 high. This further confirms the bearish sentiment in the market.
Furthermore, the pair showed a bearish reaction after the US Gross Domestic Product (GDP) for Q3 2023 came in at 4.9%, lower than the market forecast of 5.2%. This indicates that the US economy is not growing as strongly as anticipated, which has put pressure on the USD/JPY pair.
The next major support level for the USD/JPY pair is at 141.50. If the pair breaks below this level, it could decline further and test the 141.00 level. Any additional losses could potentially send the pair towards the 140.00 handle.
On the upside, immediate resistance is seen near the 143.20 level. However, the next key resistance level is at 144.00, where the major bearish trend line is also forming. A close above this level could open the doors for more upside movement, with the next target for the bulls being the 145.00 level.
While the USD/JPY pair is experiencing bearish pressure, both EUR/USD and GBP/USD have remained in a positive zone. The bulls in these currency pairs are eyeing more gains, with EUR/USD potentially aiming for a move towards the 1.1120 level.
Traders should keep an eye on the upcoming US economic releases, including the New Home Sales for November 2023 (MoM) and the Durable Goods Orders for November 2023. The forecast for New Home Sales is +0.2% compared to the previous figure of -5.6%, while the forecast for Durable Goods Orders is +2.2% compared to the previous figure of -5.4%.
These economic releases could have an impact on the USD/JPY pair and other currency pairs involving the US dollar. Traders should monitor the data closely and adjust their trading strategies accordingly.
The USD/JPY pair failed to clear the resistance zone and has started a fresh decline. The technical analysis suggests a bearish trend, with key support levels at 141.50 and 141.00. On the upside, resistance levels to watch are 143.20 and 144.00. Traders should also pay attention to the economic releases, as they could influence the direction of the USD/JPY pair.