USD/JPY Dips But Holds Key Uptrend Support

Key Highlights

• USD/JPY traded to a new multi-week high at 148.45.

• A few key supports are forming near 147.15 and 146.60 on the 4-hour chart.

• Bitcoin price failed to surpass $27,500 and corrected lower.

• The US Manufacturing PMI could rise from 47.9 to 48.0 in Sep 2023 (Preliminary).

USD/JPY Technical Analysis

The Japanese Yen witnessed a bullish trend as the US Dollar surged above the pivotal level of 147.00. Moreover, USD/JPY successfully extended its rally above the 148.00 mark, marking a new multi-week peak at 148.45.

Based on the 4-hour chart analysis, a downward correction has commenced for the pair after reaching a peak at 148.45. Currently, it is trading considerably higher than both the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours). The initial significant level of support may come into play at either 147.15 or the 50% Fibonacci retracement level, calculated from the upward movement between the swing low of 145.89 and the high point of 148.45. Furthermore, this level aligns closely with the 100 simple moving average (red, 4 hours).

The next key support is seen near the 146.50 level, below which it could test the 200 simple moving average (green, 4 hours) at 146.15. If there is a move below 146.15, the pair could dive toward 145.20. Any more losses might send the pair toward the 144.50 level.

On the upside, the pair might face resistance near 148.20. The next major resistance is near the 148.50 zone. A close above 148.50 could start a steady increase toward 149.20. Any more gains might send USD/JPY toward the 150.00 handle.

Looking at Bitcoin, the price saw a strong rejection near the $27,500 zone and recently started a downside correction.