Key Highlights
- USD/JPY started a fresh increase above 162.00 and 162.20.
- A major bullish trend line is forming with support at 161.90 on the 4-hour chart.
- EUR/USD again failed to gain strength for a move above 1.1475.
- GBP/USD rallied above 1.3450 before it faced sellers near 1.3560.
USD/JPY Technical Analysis
The US Dollar remained supported above 161.50 against the Japanese Yen. USD/JPY gained strength for a fresh move above 162.00.
Looking at the 4-hour chart, the pair surpassed the 61.8% Fibonacci retracement level of the downward move from the 162.70 swing high to the 161.28 low. The pair even settled above 162.20, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
On the upside, the pair could face strong resistance at 162.70. The next major resistance might be 162.85. A close above 162.85 could start a steady increase. In the stated case, the bulls could aim for a move to 163.50.
If there is a downside correction, the pair might find support near 162.00. There is also a major bullish trend line forming with support at 161.90.
The first major support could be near 161.30 and the 200 simple moving average (green, 4-hour). A downside break and close below 161.30 might send the pair toward 161.00. Any more losses could open the doors for a test of 160.00.
Looking at EUR/USD, the pair attempted a fresh increase, but the bears are still active near the 1.1475 resistance zone.
Upcoming Key Economic Events:
- US Import Price Index for June 2026 (MoM) – Forecast -0.7%, versus +1.9% previous.
- US Export Price Index for June 2026 (MoM) – Forecast -0.4%, versus +1.3% previous.
- US Industrial Production for June 2026 (MoM) – Forecast 0.2%, versus 0.1% previous.
- Michigan Consumer Sentiment Index for July 2026 (Prelim) – Forecast 51.0, versus 49.5 previous.
SOURCE LINK : USD/JPY Breakout Watch: Bulls Target Higher Ground
