The USD/JPY pair made an attempt to break above the 145.00 resistance level, but failed to gain momentum, resulting in a fresh decline. Looking at the 4-hour chart, it is evident that the pair has settled below the 144.00 level, as well as the 100 and 200 simple moving averages. The bears have pushed the pair below the key support level of 143.20, indicating a bearish sentiment in the market.
The downward pressure intensified after the release of the US GDP data, which came in at 4.9% in Q3 2023, lower than the market forecast of 5.2%. This weaker-than-expected economic growth contributed to the decline of the USD/JPY pair. The next major support level to watch out for is at 141.50, and if broken, the pair might further decline towards 141.00. Additional losses could potentially take the pair towards the 140.00 handle.
On the upside, immediate resistance is seen near the 143.20 level. However, the USD/JPY pair faces a significant challenge in the form of a major bearish trend line with resistance at 144.00. A close above this resistance level could potentially open the doors for further upside movement. If the bulls manage to sustain the upward momentum, the next key resistance level to watch out for is at 145.00.
While the USD/JPY pair faces bearish pressure, the EUR/USD and GBP/USD pairs remain in a positive zone and are eyeing further gains. In the case of the EUR/USD pair, the bulls are aiming for a move towards the 1.1120 level. On the other hand, the GBP/USD pair also shows strength and has the potential to continue its upward trajectory.
Aside from the technical factors influencing the USD/JPY pair, market participants should also keep an eye on upcoming economic releases. The US New Home Sales data for November 2023 will be released, with a forecast of +0.2% compared to the previous -5.6%. Additionally, the US Durable Goods Orders for the same month will also be announced, with a forecast of +2.2% compared to the previous -5.4%.
The USD/JPY pair failed to break above the resistance level and encountered a fresh decline. The technical analysis indicates a bearish sentiment, with the pair settling below key support levels. Weak US GDP data exacerbated the downward pressure. However, there is still potential for upside movement if the pair manages to overcome the major bearish trend line resistance. Traders should also monitor the performance of the EUR/USD and GBP/USD pairs, as these currencies remain in a positive zone.
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