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USD/JPY Pulls Back From Recent Highs -- Support Test In Focus - Action Forex

By Titan Fx

USD/JPY Pulls Back From Recent Highs  --  Support Test In Focus - Action Forex

Gold rallied to a fresh all-time high above $4,260 and seems unstoppable.

The US Dollar failed to stay above 153.00 against the Japanese Yen and corrected gains. USD/JPY traded below 152.50 and 152.00.

Looking at the 4-hour chart, the pair traded below the 38.2% Fib retracement level of the upward move from the 146.58 swing low to the 153.27 high. Besides, there is a key bearish trend line formed with resistance at 151.70.

On the downside, the pair might find support at 150.00 and the 100 simple moving average (red, 4-hour). It coincides with the 50% Fib retracement level of the upward move from the 146.58 swing low to the 153.27 high.

The main support might be 149.00 and the 200 simple moving average (green, 4-hour). A close below 149.00 could start a major pullback toward 148.20. Any more losses might open the doors for a test of 146.50.

On the upside, the pair faces resistance near the 151.50 level. The next hurdle could be near the trend line at 151.70. A close above the trend line resistance might push the pair to 152.50.

Looking at EUR/USD, the pair started a recovery wave, but the bears might remain active near the 1.1700 and 1.1720 levels.

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