USD/JPY Could Resume Decline, 113.20 Holds The Key

#OPINIONLEADER#

• USD/JPY started a fresh decline below the 115.00 support.
• A major bearish trend line is forming with resistance near 114.60 on the 4-hours chart.
• EUR/USD is facing resistance near 1.1400, GBP/USD started a fresh increase above 1.3600.
• Gold price started a fresh increase above the $1,830 resistance zone.

USD/JPY Technical Analysis

The US Dollar struggled to clear the 116.30 zone against the Japanese Yen. USD/JPY started a fresh decline below the 116.00 and 115.80 support levels.

Looking at the 4-hours chart, the pair settled below the 115.00 level and the 100 simple moving average (red, 4-hours). There was a move below the 50% Fib retracement level of the upward move from the 113.48 swing low to 115.07 high.

There was also a break below the 114.20 support and the 200 simple moving average (green, 4-hours). On the downside, an immediate support is near the 113.65 level. The main support is near the 113.50 level.

If there is a downside break, the pair could continue to move down towards the 113.00 level. Any more losses might send the pair towards the 112.50 level.

On the upside, the pair is facing resistance near 114.60 level. There is also a major bearish trend line forming with resistance near 114.60 on the same chart. The next major resistance is near the 115.00 level, above which the pair could test 115.50.

Looking at EUR/USD, the pair is now facing resistance near the 1.1400 level. Conversely, GBP/USD started a steady increase above the 1.3600 resistance zone.

Economic Releases

• UK Retail Sales for Dec 2021 (YoY) – Forecast +3.4%, versus +4.7% previous.
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