USD/JPY upside starts to lose some steam ahead of US holiday session

July 4, 2024 12:23 pm

It’s not much but the dollar is looking a little sluggish, keeping with the drop from yesterday. EUR/USD is trading closer to 1.0800 still, holding at the upper bound for the week. Meanwhile, USD/JPY is now down 0.4% and dipping just under the 161.00 mark:

USD/JPY hourly chart

What is notable in the chart above is that buyers had put up a defense at the 100-hour moving average (red line) on a drop following the softer US ISM services PMI data yesterday. But in European trading today, that level is giving way for the first time in nearly a month.

That puts the focus on the 200-hour moving average (blue line) at 160.73 as well. A break below that will see sellers seize back near-term control in the pair. For now, that bias is more neutral as price weaves in between the key hourly moving averages.

Overall, it is a light signal that the dollar resilience is starting to crack a little on the week.

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