December 19 Market Strategy Brief: USD/JPY, EUR/USD, Gold, and Micron Technology Technical Analysis

Fundamental Support Strength Increased

Micron Technology recently announced its first quarter financial report, with performance exceeding market expectations. Revenue, gross margin, and earnings per share all surpassed analyst forecasts, while raising its capital expenditure target for fiscal year 2026 from $18 billion to $20 billion, fully reflecting the strong demand for memory chips. This move effectively alleviates market concerns about a potential slowdown in data center investments.

At the same time, the US November CPI data showed an unexpected decline, providing room for the Federal Reserve to cut interest rates; the Bank of Japan’s rate hike decision has been finalized. The combined policy changes of the two major central banks and improving corporate fundamentals are expected to gradually restore market risk appetite.

USD/JPY: Support Firm, Range-Bound Continues

On Friday (December 19), USD/JPY rose by 0.38%, reaching a high of 156.44 during the session, hitting a nearly one-week high. The key observation point is that the 155.0 level also corresponds to the long-term support line since the high on May 13, indicating a temporary pause in the short-term downtrend, but the medium-term may still fluctuate within the 155-157 range.

Technical Outlook: If USD/JPY holds above 155.0, it may continue to rise toward 156.20 or even 158.0; conversely, if it effectively breaks below 154.50, the downward target shifts to 152.0.

Support levels: 155.0, 152.0, 150.0 Resistance levels: 156.20, 158.0, 160.0

EUR/USD: Direction Soon Confirmed, Downward Pressure Increasing

On Friday, EUR/USD remained above 1.1700 but had already declined for three consecutive trading days. 1.1700 is a short-term support/resistance level, and the AO indicator shows downward momentum is accumulating, making the downside risk highly noteworthy.

Technical Outlook: If EUR/USD breaks below 1.1700, the probability of testing 1.1630 or even 1.1500 increases; if it can stay above 1.1700 and hold above 1.1630 in the medium term, the target points toward 1.2.

Support levels: 1.1700, 1.1630, 1.1500 Resistance levels: 1.1800, 1.1900, 1.2000

Gold: Breakthrough of $4350 is Key, Reversal Signal Emerges

On Friday, gold consolidated above $4300, closing with a doji star candlestick overnight, technically indicating a potential reversal. Currently, gold is trapped at the $4350 resistance level; to continue the rally, a breakout above this level is necessary.

Technical Outlook: If the rebound is blocked at $4350, a pullback to test $4220 is likely; if it effectively breaks through $4350, further challenge of previous highs at $4381 and $4400 is expected.

Support levels: 4300, 4220, 4160 Resistance levels: 4380, 4400, 4500

Micron Technology: Uptrend Intact, Short-term Breakthrough Space Remains

Micron Technology surged on Thursday, with a maximum increase of 10.21%, reaching $263.65. Technically, the stock maintains an overall upward trend, and the overnight breakout suggests a short-term potential to break out of range-bound consolidation, with room for rebound.

Technical Outlook: If Micron Technology stays above 245.0, it is expected to continue rebounding toward 280; if it falls below 220.0, caution is needed as the uptrend may reverse.

Support levels: 245, 220, 200 Resistance levels: 264, 280, 300