USD/JPY gained bullish momentum and it cleared the 110.00 resistance.
There was a break above two bullish continuation patterns near 108.70 and 109.75 on the 4-hours chart.
The US ISM Manufacturing Index increased from 60.8 to 64.7 in March 2021.
The US nonfarm payrolls could rise 647K in March 2021, up from 379K.
USD/JPY Technical Analysis
In the past few days, the US Dollar saw a strong increase above the 108.00 resistance against the Japanese Yen. USD/JPY even broke the key 109.50 resistance level to move into a positive zone.
Looking at the 4-hours chart, the pair even broke the 110.00 resistance zone. There was a daily close above the 110.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair traded to a new multi-week high at 110.96 and it is currently consolidating gains. On the downside, there are many important supports forming near the 110.50 and 110.40 levels. On the upside, the bulls are likely to gain strength if there is a clear break above the 111.00 and 111.20 levels. The next major resistance on the upside is near the 112.00 level.
Fundamentally, the US Institute for Supply Management (ISM) Manufacturing Index for March 2021 was released yesterday by the ISM. The market was looking for an increase from 60.8 to 61.3.
The actual result was better than the forecast, as the US ISM Manufacturing Index increased from 60.8 to 64.7. Besides, the ISM Manufacturing Employment Index moved up from 54.4 to 59.6.
Overall, USD/JPY is likely to continue higher above the 111.00 and 111.20 levels. Besides, EUR/USD and GBP/USD are correcting losses, but upsides are likely to remain contained.
US nonfarm payrolls March 2021 – Forecast 647K, versus 379K previous.
US Unemployment Rate March 2021 – Forecast 6.0%, versus 6.2% previous.