USD/JPY Forms Another Bullish Pattern, US NFP Report Next

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Key Highlights

  • USD/JPY is correcting gains from the 148.80 resistance zone.
  • A key bullish flag is forming with resistance near 147.80 on the 4-hour chart.
  • EUR/USD is gaining bearish momentum below the 1.0820 support.
  • Gold prices could attempt a steady increase above the $2,050 resistance.

USD/JPY Technical Analysis

The US Dollar rallied above the 146.20 and 147.50 levels against the Japanese Yen. USD/JPY tested the 148.80 resistance and recently started a downside correction.

Looking at the 4-hour chart, the pair traded below the 148.20 and 148.00 levels. The bears were able to push the pair below the 23.6% Fib retracement level of the upward move from the 143.42 swing low to the 148.80 high.

There was a spike below the 100 simple moving average (red, 4 hours). The pair tested the 50% Fib retracement level of the upward move from the 143.42 swing low to the 148.80 high.

It seems like there is a key bullish flag forming with resistance near 147.80 on the same chart. The first major support sits near the 146.10 level. The next major support sits at the 200 simple moving average (green, 4 hours) at 145.00, below which the pair might gain bearish momentum.

On the upside, the bulls are facing hurdles near the 147.20 level. The next key resistance is near the 147.80 level. A close above the 147.80 zone could open the doors for more upsides. The next stop for the bulls might be 148.80. Any more gains might send USD/JPY toward the 150.00 level.

Looking at Gold, the bulls are still active, and it seems like they might aim for a steady increase above the $2,050 resistance if the US NFP figure misses the market forecast.

Economic Releases

  • US nonfarm payrolls for Jan 2023 – Forecast 180K, versus 216K previous.
  • US Unemployment Rate for Jan 2023 – Forecast 3.8%, versus 3.7% previous.



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