USD/JPY Support Holds Strong As Bulls Target A Fresh Breakout

Key Highlights

USD/JPY remained supported and climbed above 159.80.
A bullish trend line is forming with support at 159.70 on the 1-hour chart.
EUR/USD is struggling to clear the 1.1680 resistance zone.
Bitcoin declined heavily and tested the $62,000 support.

USD/JPY Technical Analysis

The US Dollar remained well bid above 159.20 against the Japanese Yen. USD/JPY climbed above the 159.50 and 159.60 resistance levels.

Looking at the 1-hour chart, the pair gained strength for a move toward 160.00. A high was formed at 160.04, and the pair is now consolidating gains near the 23.6% Fib retracement level of the upward move from the 159.54 swing low to the 160.04 high.

On the downside, the pair could find bids near 159.80, the 100 simple moving average (red, 4-hour), and the 50% Fib retracement level of the upward move from the 159.54 swing low to the 160.04 high.

The first major support might be 159.70. A close below 159.70 might initiate a drop to 159.20 and the 200 simple moving average (green, 4-hour). Any more losses might open the doors for a drop toward the 158.80 zone.

On the upside, an immediate resistance could be 160.00. The next major resistance might be 160.50. A close above 160.50 could open doors for gains above 161.20. In the stated case, the bulls could aim for a move to 162.00.

Looking at EUR/USD, the pair failed to continue higher, started a fresh decline, and might move below the 1.1575 support.