The USD/JPY pair experienced a rally above 149.20 before facing resistance from the bears. On the 4-hour chart, it traded below a significant bullish trend line with support at 149.35. Meanwhile, the EUR/USD saw continued losses as it dropped below the 1.0950 support level, and the GBP/USD is also at risk of further declines below the 1.3000 support level.
In terms of technical analysis, the US Dollar made significant gains against the Japanese Yen, surpassing levels of 147.50 and 148.50. The pair reached as high as 149.54 before experiencing a correction in gains. A major bullish trend line with support at 149.35 was broken, indicating a possible downward movement towards the 148.00 level if the bears maintain control.
Immediate support is seen near the 147.70 level, close to the 23.6% Fibonacci retracement level of the upward move from the swing low of 141.64 to the high of 149.54. Further support lies at the 146.50 level, with potential losses taking the pair towards the 50% Fibonacci retracement level at 145.60. On the upside, resistance is expected near the 149.40 level, with the first major resistance at 149.50. A break above 149.50 could lead to further increases, targeting the 150.00 level and potentially reaching 152.00. Continued gains might test the 153.20 zone.
In addition to the USD/JPY analysis, the EUR/USD pair failed to defend against more downsides and dropped below the 1.0950 support zone. Looking ahead, upcoming economic events include Canada’s Net Employment Change and Unemployment Rate for September 2024, as well as the US Producer Price Index for the same month.
Overall, the USD/JPY pair is facing potential pullback risks as bears gain momentum, while other major currency pairs like the EUR/USD and GBP/USD are also experiencing downward pressure. Traders should closely monitor key support and resistance levels to make informed trading decisions in the current market environment.
