The USD/JPY pair has experienced a significant rally towards the 152.00 resistance level before entering a consolidation phase. A key bullish trend line has been identified with support at 151.20 on the 4-hour chart. This uptrend was initiated by the US Dollar breaking above the 148.80 resistance against the Japanese Yen and clearing the 150.00 level. The pair managed to settle above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour) as well.
As the USD/JPY pair tested the 152.00 resistance zone, it is now facing a potential downside correction. The immediate resistance lies near the 151.80 level, with the major resistance at 152.00. A break above this key level could lead to further upside momentum towards 153.20. However, failure to break above 152.00 may result in a downside movement. The pair has strong support at 151.20, with a major bullish trend line providing additional support at the same level. If the pair breaks below 150.65, it could decline towards the 150.00 support and potentially even reach the 148.50 level in the near term.
Meanwhile, gold prices have continued to rally, testing the $2,300 resistance level. This surge in prices may signal a potential consolidation phase in the near future. The bullish momentum in gold suggests a positive outlook for the precious metal, with further upside potential if the resistance at $2,300 is breached.
The upcoming US economic releases, specifically the nonfarm payrolls for March 2024 and the unemployment rate, are expected to have a significant impact on both the USD/JPY pair and gold prices. Analysts are forecasting a decline in nonfarm payrolls from 275K to 200K, while the unemployment rate is expected to remain steady at 3.9%. Any deviation from these forecasts could lead to increased volatility in the financial markets, influencing the direction of the USD/JPY pair and gold prices.
The USD/JPY pair and gold prices are currently at critical junctures, awaiting the release of key economic data. Traders and investors should closely monitor the developments in the market to capitalize on potential trading opportunities arising from the impact of economic releases on these financial instruments.
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