During the European session on September 13th (Friday), the US dollar index reported a range of 100.9911/101.0012, down 0.25%. The USD/JPY reported a range of 140.606/620, down 0.84%. The following is an analysis of the USD/JPY, USD/CAD, and GBP/JPY currency pairs.

The USD/JPY expanded its decline and tested the 140.70 level.

(USD/JPY 4-hour chart Source: E-Compass)

The USD/JPY is still in a bearish zone below 145.00. The USD/JPY extended its decline below the 143.20 and 142.50 levels.

On the 4-hour chart, the USD/JPY tested 140.70 and closed below the 100 and 200 simple moving averages. The currency pair formed a low point at 140.70 and is currently consolidating losses.

There is a slight upward movement above the resistance level of 142.00. During the downtrend from the high of 147.20 to the low of 140.70, the currency pair climbed above the 23.6% Fibonacci retracement level.

On the upside, the currency pair may face resistance near 143.00. On the same chart, there is also a put trendline formed at 143.10 resistance level. The next key resistance level is located near 144.00, which is the 50% Fibonacci retracement level from the 147.20 high to the 140.70 low.

If there is a clear breakthrough of 144.00, it may lay the foundation for a move towards the 100 simple moving average. Further upside movement may require testing the 145.50 area.

On the downside, immediate support is located near 141.20. The next key support level is near 140.70. A drop below 140.70 may set the stage for a greater decline. The next major support is around 140.00.

The USD/CAD is once again approaching the 200-day moving average.

(USD/CAD daily chart source: Easymarkets)

The USD/CAD is moving back and forth near the 200-day simple moving average, slightly below 1.3600. Earlier this week, the market successfully moved to the 1.3620 resistance level, increasing optimism for more bullish action.

After the price rebounded from the 1.3440 support level, the technical oscillation indicators confirmed the upward rebound. The MACD remains above the trigger line in the negative value zone, while the relative strength index is attempting to cross the neutral threshold of 50.

If the currency pair maintains buying interest, it may challenge the 1.3620 resistance level before reaching the 50-day simple moving average (SMA) at 1.3660. Traders may also reach the 1.3790 resistance level, which was entered from the low point of the internal fluctuation on July 31.

On the other hand, if it falls below the current 20-day moving average of around 1.3545, it may push the bears towards the support area of 1.3420-1.3440. More downward pressure may support the put trend, hovering around 1.3360.

In short, the USD/CAD has been in a short-term negative trend since early August, especially after hitting a new low of 1.3420.

GBP/JPY resumes its downward momentum.

(GBP/JPY daily chart source: Yi Hu Tong)

GBP/JPY slightly increased near 186.00 at the close on Thursday, and then faced downward pressure again.

The currency pair has been shifting from the recent low point of 183.70 earlier this week, forming a hammer candlestick, giving hope for a possible reversal. If the bears manage to close below 185.00-185.65 today, although the RSI and stochastic oscillators are approaching oversold levels, the hammer candlestick may not be a reliable signal.

Continued downside movement may retest the bottom of 183.00 in August, and slightly below that bottom, the price may reach the support trendline, which will join the lows of 2022 and 2024 at 182.00. If this bottom is broken, selling pressure may accelerate towards the psychological level of 180 or closer to the extension of the uptrend line in the first quarter of 2023 at 179.00.

In order to break above the high of 193.46 in September and improve the short-term outlook, bulls will have to make a significant effort. The 20-day exponential moving average (EMA) may be the first resistance level around 188.20. Then, there may be some congestion near 189.84, which is the 61.8% Fibonacci retracement level of the uptrend in 2024. If the price continues to rise, the 50-day and 200-day moving averages will open the door around 191.64.

Overall, the British pound / yen has not escaped the downside risks, but if the price can once again close above 185.00-185.65, further selling may be delayed.

At 18:20 Beijing time, the USD/JPY reported 140.359/639, down 0.82%. The USD/CAD reported 1.3577/78, down 0.01%. The GBP/JPY reported 184.6260/6620, down 0.76%.