The USD/JPY pair is currently aiming for an upside break above the 156.40 resistance level. The US Dollar has maintained a strong position above the 154.50 level against the Japanese Yen, forming a solid base for a potential increase. The pair managed to surpass key resistance levels at 155.80 and 156.00, signaling a bullish momentum. However, it is crucial to note that the bears are actively present near the 100 simple moving average on the 4-hour chart. The 200 simple moving average is also acting as a point of consolidation for the pair. Immediate support is expected near the 155.20 level, with a major support zone at 155.00. A break below 155.00 could trigger a larger decline towards the 154.20 level.
Potential Bullish Movement in EUR/USD
On the other hand, EUR/USD has been gaining momentum above the 1.0880 resistance level. The pair is showing signs of bullish activity, hinting at a possible move towards the 1.0950 level in the near future. The current market conditions suggest a positive outlook for the Euro against the US Dollar, with a potential for further upward movement.
Gold Prices and Economic Releases
In addition to the currency market analysis, gold prices have also seen a recovery above the $2,350 resistance zone. This indicates a shift towards a positive trend in the precious metal market. Furthermore, upcoming economic releases such as the US nonfarm payrolls and unemployment rate for May 2024 are key factors to watch. The forecasted figures for nonfarm payrolls stand at 185K, compared to the previous 175K, while the unemployment rate is expected to remain stable at 3.9%.
Overall, the technical analysis of USD/JPY and EUR/USD suggests a potential upside break in both currency pairs. The resistance levels and bearish trend lines are critical factors to monitor for any significant price movements. Additionally, keeping an eye on economic releases can provide valuable insights into market sentiment and potential volatility. It is essential for traders and investors to stay informed and adapt their strategies accordingly to navigate the dynamic nature of the forex market.
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