🔍 Technical Analysis
Trend: Bearish
Key Levels:
Support: 142.15, 140.00, 139.55
Resistance: 143.56, 144.09, 147.65
Indicators:
Moving Averages: The price is below key moving averages, indicating a bearish trend.
RSI: Neutral, suggesting potential for further downside.
Stochastic Oscillator: Sell signal, supporting a bearish outlook.
The pair has fallen below the 50-day EMA, reinforcing the bearish sentiment. A continued move below 142.15 could open the path toward 140.00 and 139.55. Alternatively, a rebound above 143.56 may lead to testing higher resistance levels.
📰 Fundamental Factors
US Dollar Weakness: The dollar index has declined to 98.9, its lowest since late April, amid concerns over trade policies and fiscal deficits.
Japanese Economic Data: Japan's manufacturing PMI was revised to 49.4 in May, indicating a slower pace of contraction. Furthermore, employment in the manufacturing sector increased at the fastest pace since April 2024, signaling potential economic recovery.
Trade Tensions: President Trump's threat to double tariffs on steel and aluminum imports to 50% has escalated trade tensions, increasing demand for safe-haven assets like the Japanese yen.
📅 Key Events This Week
3 June: US ISM Manufacturing PMI release.
5 June: Federal Reserve Chair Powell's speech.
7 June: US Non-Farm Payrolls data.