Major sell-off intensified on Monday, turning US indices into bear market territory as recession fears grew ahead of the key FOMC meeting this week. The S&P 500 tumbled nearly 4% to 3749.83, the lowest level since 2021; the S&P 500 is now down 21% from its high, closing in the bear market territory. In the meantime, the Nasdaq Composite shed 4.68% while the Dow Jones Industrial Averages dropped 2.79%; the Nasdaq and the Dow were down 33% and 17%, respectively from their high.

The markets continued to digest a higher-than-expected inflation report from last week, thus beginning to anticipate an even faster pace of interest rate hikes; some Fed policymakers are now coming up with the idea of a 75 basis point rate increase this week. Meanwhile, the market closely monitored the spread between the US 2- year Treasury yield and the US 10- year Treasury yield. The US two-year yield now exceeds the 10- year for the first time since early April, a potential recession.

Bitcoin, Ethereum, and other cryptocurrencies plunged on Monday, making two of the world’s biggest cryptocurrency platform-restricted activities. Bitcoin and Ethereum were both down more than 15% intraday. Crypto-investors seemed to dump intensify their crypto-assets amid a broader sell-off in risk assets as the rampant inflation continued and the Fed’s upcoming interest rates decision.

Main Pairs Movement

AUD/USD dropped 1.72%, to 0.69204 on Monday following a collapse in the US and the global stock market. Investors bet on the greenback as the Fed will impose even more tightening monetary policy, boosting the greenback.

WTI had little change and remained well supported near 120 despite the risk-off conditions as China lockdown worries. According to Bloomberg, China is somehow walking back some of its Covid loosening measures as the officials see some potential outbreaks.

Gold plunged more than 2% and closed at 1819.39 on Monday as the greenback soared to fresh cycle highs. Despite the inflationary pressure giving some support to the bullion, the potential 75 basis points interest rate hikes by the Fed has caused angst in the financial markets, hurting the precious metal, gold.

EUR/USD was down for the third- consecutive trading day, closed at 1.0406 on a bloody Monday. Risk aversion dominated the financial and forex markets as the greenback demand spurred, sending most of the G-10 currency pairs to the lowest, including EUR/USD.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD continued to plunge on the first trading day of the week. The EURUSD is now on its third consecutive losing day. The Euro has slid more than 2% after the ECB conference held on last Thursday. Inflation and worries over an impending recession have boosted demand for haven assets such as the U.S. Greenback. The U.S. Dollar remains in strong demand as the benchmark 10-year Treasury yield rises past 3.35%.

On the technical side, EURUSD has broken well below our previously estimated support level of 1.064. As of writing, EURUSD is heading towards its lowest level of 2022 and the support level of 1.03783. RSI for EURUSD currently sits at 35.95. On the four-hour chart, EURUSD is trading below its 50, 100, and 200-day SMA.

Resistance: 1.07454

Support: 1.03783

GBPUSD (4-Hour Chart)

GBPUSD has continued to slide on the first trading day of the week. The British GDP contracted 0.3%, month over month, marking a larger contraction than the previous monthly figure of negative 0.1%. The slowing economy in Britain has agitated market participants as the ECB now faces the possibility of stagflation. The broad-based risk-averse market sentiment has only added fuel to the recent rally of the U.S. Greenback.

On the technical side, GBPUSD has dropped below its May low of 1.21996 and is heading towards two-year-long support at 1.20824. RSI for Cable has dropped to 33.42, as of writing. On the four-hour chart, GBPUSD is currently trading below its 50, 100 and 200-day SMA.

Resistance: 1.25944

Support: 1.20824

USDJPY (4-Hour Chart)

USDJPY continued to be traded at extremely elevated levels. The Dollar’s strength has been aided by the soaring U.S. 10-year treasury yield and a broad-based risk-averse environment. BoJ chief Haruhiko Kuroda recently expressed concerns over the sharp drop of the Japanese Yen, however, the Japanese Yen will continue to fare worse against the Dollar as market participants are now pricing in a possible 75 basis point interest rate hike by the Federal Reserve.

On the technical side, USDJPY seems to have hit its near-term resistance level at the 135 price region. A near-term support level at 133.382 has formed, while the lower level of support remains firm. RSI for USDJPY has reached overbought territory and is indicating 74.12, as of writing. On the four-hour chart, USDJPY currently trades above its 50, 100, and 200-day SMA.

Resistance: 134.56

Support: 133.5, 132.5

Economic Data

US equity markets lost ground on Friday following the inflation indicator, CPI, which rose 8.6% in May, the highest level since 1981. The Dow Jones Industrial Averages slid 2.73% while the S&P 500 shed 2.91%, to 3900.85. The Nasdaq Composite dropped 3.56%, to 11832.82. The inflation accelerated further in May. The CPI rose 8.6% from a year ago, and the core CPI was up 6%, also higher than the expected, 5.9%. Markets reacted negatively and confronted selling pressures to the reports as investors worried about acting more aggressively from the Fed; some economists even predicted the Fed might hike rates by as much as 3 basis points, 0.75% next week.

In the bond market, markets were closely monitoring and fearful of a recession; investors were watching the bond market. the short-term bond, 2-year Treasury yield reached 3.06%, and the long-term bond, 10-year Treasury yield, reached 3.159. The spread between the two bonds was only 10 basis points. If the 2- year Treasury bond yield moved above the 10- year, then the inverted yield happened again, a recession signal.

Main Pairs Movement

Gold, recovered from the multi-week low and reached 1871.61 on a volatile Friday. Fundamentally, gold is still confronted with sizeable losses as investors continued to seek refuge in the safe-haven greenback amid the soaring inflation and a more aggressive monetary policy from the Fed. Further price actions eye on the FOMC meeting.

EUR/USD lost ground on Friday, sliding 0.92% to 1.05170. The safe-haven greenback dominated the markets after the US CPI report and consumer confidence data from the US, signalling a solid move to the greenback as the Fed might be more aggressive on its policy.

USD/JPY continued to head north, finishing with 134.317, breaking its 20- year peak. The BOJ’s dovish isolation, keeping its YCC measures and ultra-loose policy, continued to give pressure on the Japanese Yen.

AUD/USD dropped to a fresh two-week low, back below the 0.7100 level in reaction to higher than expected US CPI. The Aussie faced aggressive selling as investors sought a refuge, thus the demand for the safe-haven greenback increased.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD continued to head lower on the last trading day of the week. The rallying Dollar exerted intense selling pressure on the Euro. The highly anticipated U.S. CPI report came in red hot at 8.6%, year over year. The benchmark U.S. 10-year Treasury yield shot above 3.1% as market participants priced in a possibility of a further interest rate hike by the Fed. The ECB’s Thursday meeting did not add confidence to the Euro as the central bank is only committed to a 25 basis point interest rate increase and lowered economic guidance for the rest of the year.

On the technical side, EURUSD has dropped below our previously estimated support level of 1.06477 and is heading towards 3-year lows. Support levels for EURUSD now sit at near the 1.05031 price region, which is a 2017 low. RSI for the pair sits at 39.93, entering oversold territory. On the four-hour chart, EURUSD is trading below its 50, 100, and 200-day SMA.

Resistance: 1.07691

Support: 1.06477

GBPUSD (4-Hour Chart)

GBPUSD fell sharply on the last trading day of the week as the dollar rallied. The red hot U.S. CPI report propelled the U.S. 10-year Treasury yield above the 3.1% level. On Thursday, British Prime Minister Boris Johnson announced a proposed tax cut for households in an attempt to boost the British economy; however, the British Pound failed to gain traction. Next week’s FOMC meeting will be closely watched by market participants.

On the technical side, GBPUSD has dropped below our estimated support level at 1.24539 and is pounding towards the following near-term support level at 1.21996. RSI for Cable sits at 38.26, as of writing. On the four-hour chart, GBPUSD currently trades well below its 50, 100, and 200-day SMA.

Resistance: 1.25944

Support: 1.21695

USDJPY (4-Hour Chart)

USDJPY rose on the last day of the trading week as the Dollar index rallied past the 104 level. The U.S. CPI data came in at 8.6%, year over year. With inflation continuing to run high, market participants are pricing in possibly more aggressive interest rate hikes by the Fed. Next week’s FOMC should guide the interest rate trajectory for the rest of the year.

On the technical side, USDJPY has risen near our estimated resistance level at 134.56. RSI for the pair has risen to 67.05 and once again entered the overbought territory. On the four-hour chart, USDJPY is trading above its 50, 100, and 200-day SMA.

Resistance: 134.56

Support: 133.5, 132.5

Economic Data

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US stocks market fell sharply ahead of a key inflation report as investors worried about the overall US economy. The Dow Jones Industrial Average slid 1.94% while the S&P 500 fell 2.38%. And the Nasdaq Composite shed 2.75%, finishing with 11,754.23. Major technology companies struggled on Thursday as investors were concerned if the CPI figure still holds high, then the Fed has more reasons to be more aggressive on the rates. Meta Platform slid 6.4% and Amazon dropped more than 4% while Apple fell 3.6%.

Following the ECB meeting on Thursday, major European indices closed down lower as the ECB announced that it intends to increase the rates by 25 basis points at its meeting in July, and it expects to raise another one in September. In the meantime, the ECB downgraded its economic growth forecasts and upgraded and revised its inflationary projections.

Alibaba shares slid more than 8% on Thursday after its financial affiliate Ant Group mentioned it at the moment has no plan to IPO. However, according to Bloomberg, Chinese financial regulators have claimed that they have commenced early-stage discussions about reviving the IPO, meaning that the Chinese government has potentially given the green light for a listing.

Main Pairs Movement

USD/JPY climbed to a new 20- year high, heading toward 135.00. The Japanese Yen continued to depreciate against the greenback as the Bank of Japan defies global trends and keeps its monetary policy loose.

Gold was down 0.29% as the market mood turned firmly on the ECB monetary policy decision. Despite the ECB keeping its rates unchanged as expected, gold turned downside following the news that the hike will possibly happen in July and September.

EUR/USD was once hitting 1.07737 but wrapped up with nearly 1% lower, 1.06147. After the ECB meeting, the 25 basis point increments in July seemed to shift the ECB’s stance from a hawkish decision to a dovish one, thus dragging the euro dollar down against the greenback.

 
Technical Analysis

EURUSD (4-Hour Chart)

EURUSD experienced strong volatility as the ECB announced its monetary plans for the rest of the year. Thursday’s ECB conference saw a shift towards a hawkish ECB, the council has announced that it intends to raise its key interest rates by 25 basis points at the July meeting; furthermore, the central bank sees further interest rate increases in order to keep pace with its 2% medium-term target. The Eurozone has experienced soaring inflation as multiple constituents turned in a higher than 8% CPI increase for the month of May. During their press conference, the ECB also projected a slower growth of the economy as supply chain issues and geopolitical concerns still loom large across the European region.

The Euro soared at the initial announcement of an interest rate hike, but the Euro soon lost steam and entered a sharp spiral as the ECB announced gloomy forward guidance. RSI for the pair is indicating 48.07, as of writing. On the four hour chart, EURUSD is trading below its 50, 100, and 200 days SMA.

Resistance: 1.07691

Support: 1.06477

GBPUSD (4-Hour Chart)

The British Pound traded lower against the U.S. Dollar over the course of Thursday’s trading. The strong Dollar was assisted by the soaring short term treasury yield, which has once again traded past the key 3% level. Market participants continue to price in further interest rate hikes by the Fed as they await the key May CPI data, which will be released during the American trading session tomorrow. On the other hand, the U.K. Gilt broke above 2.3%, but the BoE could be stuck between a rock and a hard place as the British economy has slowed significantly since the previous rate hike.

On the technical side, Cable has been consolidating around the 1.25 price region for the past two weeks. The narrowing credit spread has delivered a relatively calm environment for Cable. Near term resistance at the 1.259 price region remains strong. RSI for Cable sits at 47.44, as of writing. On the four hour chart, Cable is trading below its 50, 100 and 200 day SMA.

Resistance: 1.25691, 1.26539

Support: 1.24539

USDJPY (4-Hour Chart)

USDJPY traded mostly sideways around the 134 price region for Thursday. Despite the rising U.S. 10 year treasury yield, Yen bulls have found their footing and defended the Yen from slipping further. However, as interest rates between the two countries continue to widen as the year progresses, USDJPY could rise further still. Market participants will focus on the U.S. May CPI data set to be released during the American trading session today.

On the technical side, USDJPY continues to trade higher into the historical territory. Near term, resistance exists around the 134.56 price region, while support levels could be found along the 132.5 price region and the 133.5 price region. RSI for the pair sits at 71.98, slightly above overbought territory. On the four hour chart, USDJPY is trading above its 50, 100, and 200 days SMA.

Resistance: 134.56

Support: 133.5, 132.5

Economic Data

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US equities edged lower on Wednesday amid the concern of inflationary pressure and the rising US Treasury yields. The Dow Jones Industrial Average dipped 0.81%, 270 points. The Nasdaq Composite shed 0.73% while the S&P 500 dropped 1.08% to end at 4,115.77. Markets continued to monitor the signs of slowing economic growth ahead of the CPI reading later this week. In the meantime, the soaring price of crude oil prices also weighed on the negative movement of the US equities markets; oil prices reached a 13- week high on Wednesday. According to some analysts, if prices continued to climb, that could lead to demand destruction, potentially turning into a recession period as consumers pull back on their spending.

Twitter schedules to hold a shareholder vote on Elon Musk’s acquisition deal in early August. According to Twitter, it continues to share information with Elon Musk; as a result, Twitter might plan to furnish its licensing business like a package to Musk as part of the information exchange. However, Musk’s lawyers have warned Twitter that Musk might walk away from the acquisition if Twitter fails to provide the data that Elon Musk seeks on those fake accounts on Twitter.

Main Pairs Movement

EUR/USD hovered near 1.0710 ahead of the ECB meeting. The ECB is set to announce the end of its stimulus program. Regarding the interest rates, the European policymakers and the ECB President Christine Lagarde seem to have diverging comments, which the former has been hinting at a 50-basis point rate hike, but the latter inclines toward a conservative 25-basis point rate hike.

USD/JPY again traded higher, up 1.24%, heading toward 135.00. The Japanese Yen continued to weaken as investors recalled that the BOJ has promised to do unlimited bond purchases.

Spot gold turned slightly upside, up 0.05% at 1853.86 on Wednesday. The US dollar swung alongside the market sentiment and bond yields. Further price actions eye on the CPI announcement this Friday.

WTI recovered back above the 120.00 level following the US inventory report. Despite the API indicating that it rose its output last week, the data still showed a decline in gasoline inventories.

 
Technical Analysis

EURUSD (4-Hour Chart)

EURUSD rose ahead of the ECB interest rate decision. Despite the rising U.S. 10 year treasury yield, the Dollar remains weak amidst growing concerns in the U.S. EU GDP for the first quarter of the year was upwardly revised to 0.6%, quarter over quarter, thus buoying the shared currency. Market participants will be focused on the ECB interest rate decision, which will be coming in during the European trading session. The ECB is not expected to raise interest rates, but some analysts are predicting an end to the negative interest rate environment by the end of the year.

On the technical side, EURUSD still trades below our estimated resistance level at 1.07614, but support levels at 1.0695 were successfully defended by yesterday’s market close. RSI for the pair currently sits at 54.87. On the four hour chart, EURUSD currently trades above its 50, 100, and 200 days SMA.

Resistance: 1.07614, 1.07864

Support: 1.0695, 1.06816

GBPUSD (4-Hour Chart)

GBPUSD lost its two-day winning streak and is heading lower once again, despite a broad-based Dollar weakness. The economic outlook for the U.K. remains gloomy as inflation and rising interest rates continue to bite into upward momentum. The BoE finds itself in a precarious position as further interest rate hikes to tame inflation could disproportionately hurt U.K.’s economic growth. The Fed, on the other hand, still has tightening power as the U.S. economy remains robust.

On the technical side, Cable still faces its near term resistance level at 1.25691. The support level for Cable remains around the 1.2453 price region, but that level is weak as Cable dipped below the 1.245 level during yesterday’s trading but was able to close above. RSI for the pair sits at 49.07, as of writing. On the four hour chart, Cable currently trades below its 50, 100, and 200 days SMA.

Resistance: 1.25691, 1.26539

Support: 1.24539

USDJPY (4-Hour Chart)

USDJPY has continued to soar, even though the Dollar has lost steam during Wednesday’s trading. The Japanese Yen continues to fall against the U.S. Greenback as the BoJ insists on defending its near-zero target for the 10-year yields. The falling exchange rate, however, could be a positive sign for Japan as the country begins to open its borders to tourists. The Japanese export and tourism-focused economy could benefit from a revived tourism scene and an easing supply chain as China winds down its Covid lockdown policies.

On the technical side, USDJPY has broken above our estimated resistance level at 133 and is marching towards record highs. Near term, resistance is projected to be around the 135 price region while support levels at 130 remain firm. RSI for the pair sits at 75.56, as of writing. On the four hour chart, USDJPY currently trades well above its 50, 100, and 200 days SMA.

Resistance: 133

Support: 130

Economic Data

US equities edged higher despite the retail giant, Target issuing a warning about its current quarter’s profits, pressuring the broader retail sector. The Dow Jones Industrial Average was up 0.8%. The S&P 500 rose 0.95% while the Nasdaq Composite climbed 0.94%. The three major indices opened solidly lower but turned positive as the day progressed following the decline of bond yields. Major retailers have delivered their mixed earning reports, adding some volatility to the equities market. The mixed reports signalled the potential recession or a rapid change in consumer spending.

A widely followed Federal Reserve member has started indicating that the US economy could be headed for a second successive quarter of negative growth, meeting a rule-of-thumb definition for a so-called recession. According to Fed’s GDPNow tracker, it shows an annualized gain of 0.9% for the second quarter, down from an estimated 1.3%.

Following Apple’s WWDC22, Apple is turning into a fintech company, not just focusing on devices and software, but now shifting to a new payment system. Apple announced several new features for its wallet at its developer’s conference on Monday, directly competing with other fintech companies, including PayPal and Affirm.

Main Pairs Movement

USD/JPY continued to edge higher toward 133.00, climbing a third consecutive day. The Japanese Yen stayed offered despite Japan’s GDP being better than expected. The divergence of the monetary policies between the Fed and the BOJ remained weighing on the currency pair.

WTI extended its consolidation toward the 118.00 level amid concerns about the oil supply. At the same time, oil prices witnessed a strong upside movement to the expectation of a demand recovery in China. On the supply side, the American Petroleum Institute has agreed to increase the supply by 1.845 million barrels, but it seemed to do minimal impact on the oil prices as the boost of the oil supply was still far to offset the supply gap from Russia.

AUD/USD climbed 0.54% on Tuesday following the monetary decision from RBA, lifting the rate by 0.50%, higher than expected. The RBA pointed out that inflation in Australia has surged significantly, and the RBA was needed to tackle the inflationary pressure by being more aggressive on the rates.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD fell from the start of the trading day, but the pair was able to pair losses once the American trading session began. A weaker Dollar and an overall risk-averse sentiment aided the Euro to end its third consecutive losing day against the U.S. Greenback. The ECB is set to convene on Thursday and announce its monetary policy decision.

On the technical side, EURUSD has been trading around a tight range between 1.06384 and 1.07864 for the past couple of weeks. The pair’s near-term support levels remain at 1.0695 and 1.06816, while resistance levels at 1.07864 stand firm. RSI for the pair sits at 53.46, as of writing. On the four hour chart, EURUSD is trading below its 50 day SMA, but above its 100 and 200 day SMA.

Resistance: 1.07614, 1.07864

Support: 1.0695, 1.06816

GBPUSD (4-Hour Chart)

The British Pound surged as the U.S. Greenback lost demand. Britain’s Prime Minister Borris Johnson survived the vote of no confidence, by a small margin. U.K.’s services PMI printed 53.4 for May, marking the largest one-month decline for the year; furthermore, as the U.S. 10 year treasury yield retreated below 3%, the Pound gained further traction.

On the technical side, GBPUSD has broken through our previously estimated resistance level at 1.25691, but the 1.26539 resistance level remains unchallenged. The support level at 1.24539 remains firm. RSI for Cable sits at 58.46, as of writing. On the four hour chart, Cable currently trades above its 50, 100, and 200 days SMA.

Resistance: 1.25691, 1.26539

Support: 1.24539

USDJPY (4-Hour Chart)

USDJPY stalled out as the pair neared the 133 price region. Broad-based dollar weakness allowed the Japanese Yen some breathing room on Tuesday’s trading; however, the downside for the Japanese Yen still seems abundant, due to the BoJ’s easy policy stance. On the economic docket, Japan is set to release its quarterly GDP early in the Asia trading session on the 8th.

On the technical side, USDJPY has met its near term resistance at the 133 price region, while the near term support level at 130 sits firmly. RSI for the pair is indicating 77.16, as of writing. On the four hour chart, USDJPY is currently trading above its 50, 100, and 200 days SMA.

Resistance: 133

Support: 130

Economic Data

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US markets moved slightly higher on Monday as investors tried to rebound from a losing week. The Nasdaq Composite rose 0.40% while the S&P 500 was up 0.31%: the Dow Jones Industrial Average was once up as high as 300 points, but gave up some of its gains following the benchmark 10- year treasury yield pushed above 3%, finishing with 0.1% at the end of the day. One of the major boosts from the equities markets was the news that Beijing, China rolled back some Covid- related restrictions; at the same time, Chinese regulators are in the process to wrap up their investigations into the ride-hailing giant Didi.

The UK Prime Minister Boris Johnson faced a vote of confidence on Monday. Johnson’s leadership has been wracked and doubted by several controversies, the biggest of which has been the party gate scandal when Johnson and other officials broke its Covid lockdown restriction. Despite Boris Johnson eventually surviving the vote, 211 lawmakers voted in favour of Johnson and 148 lawmakers voted against him, the call of growing discontent has truly impacted Johnson’s public standing.

Main Pairs Movement

Gold was down 0.48% on Monday as the US dollar was feeling the pull of gravity, which kept the downside in the precious metal. To add, most of the European markets were on a holiday, gold’s downside mainly came from the pressure of the US dollar.

USD/JPY portrayed a new high, above 131.00, as Japan’s easing monetary policy continued to weaken the Japanese Yen. On the flip side, the Fed Vice-Chair Lael Brainard and Cleveland Fed President Mester repeated the statements which suggested higher odds favouring raising interest rates.

AUD/USD hovered around 0.7200 as markets awaited RBA policy on early Tuesday, and was down 0.21% at the end of the day.

Crude oil prices edged lower on Monday, buoyed by Saudi Arabia possibly raising its oil prices in July, but a higher output from OPEC+ weighed on the downside of oil prices. WTI was down 0.51%, trading at 117.689 at the end of the day.

 
Technical Analysis

EURUSD (4-Hour Chart)

The Euro fared worse against the U.S. Dollar on the first trading day of the week. Market participants demanded the U.S. Greenback, which rose more than 0.3% after the American trading session began. The shared currency continues to trend upwards in the long term, but significant economic headwinds and a slow to react central bank pose long term upside limits to the EURUSD pair. Market participants will be focused on Thursday as the ECB is set t announce its monetary policy statement.

On the technical side, the resistance at 1.07614 remains unchallenged while support levels at 1.0695 and 1.06816 sit firm. RSI for the pair sits at 53.34, as of writing. On the four hour chart, EURUSD currently trades below its 50 day SMA, but above its 100 and 200 day SMA.

Resistance: 1.07614, 1.07864

Support: 1.0695, 1.06816

GBPUSD (4-Hour Chart)

The British Pound traded lower against the dollar on the first trading day of the week. Dollar demand surged as the U.S. 10 year treasury yield soared past 3%. Despite an upward equities market, market participants rotated into the U.S. Greenback to take advantage of rising yields. On the 7th, the U.K. is set for a vote of no confidence for prime minister Borris Johnson.

On the technical side, resistance for Cable sits firmly at the 1.25691 and 1.26539 price region, while the support level at 1.24539 remains intact. RSI for the pair sits at 47.27, as of writing. On the four hour chart, Cable currently trades below its 50 days SMA but above its 100 and 200 day SMA.

Resistance: 1.25691, 1.26539

Support: 1.24539

USDJPY (4-Hour Chart)

The U.S. Greenback surged against the Japanese Yen on the first trading day of the week. Broad-based demand for the Dollar resulted from the surging U.S. 10 year treasury yield. The better than expected job report from last Friday provided much tailwind for the U.S. Dollar. The BoJ remains its long term easy money stance to prop up its export friendly economy; on the other hand, the Fed is set to raise at least 100 basis points more by the end of the year. Interest rate differentials between the two countries continue to favour Dollar bulls.

On the technical side, USDJPY reached its historical high on the first trading day of the week and is continuing higher into the American trading session. The support level for USDJPY sits at 129.795 and 126.738, while resistance levels have yet to form. RSI for the pair sits at 52.99, as of writing. On the four hour chart, USDJPY currently trades well above its 50, 100, and 200 days SMA.

Resistance: 133

Support: 129.795, 129.738

Economic Data