Japanese Yen, USD/JPY, EUR/JPY – Speaking Factors
- USD/JPY has gone into consolidation mode after making a brand new excessive final week
- Bollinger Bands and a candlestick should not sufficient for USD/JPY to go decrease to this point
- The Euro has misplaced floor to the Yen. Will EUR/JPY make a brand new 9-month low?
USD/JPY – Technical Evaluation
Final week, USD/JPY made a brand new excessive when it took out the height of November 2017. It has since consolidated and traded throughout the 112.727 – 114.971 vary for over a month. These ranges would possibly now present help and resistance respectively.
The Bearish Engulfing candlestick made on the day of the multi-year excessive has seen USD/JPY depreciate to 113.589, which coincided with the 34-day easy shifting common (SMA). This may occasionally now be a help degree.
There was one other potential reversal sign from final week. The value closed above the higher band of the 21-day easy shifting common (SMA) based mostly Bollinger Band. The next day it closed again contained in the band. This has seen some bearishness unfold however to this point it has lacked comply with by way of.
Conversely, a bullish triple shifting common (TMA) formation stays intact, regardless of the latest weak point in value.
A TMA requires the worth to be above the quick time period easy shifting common (SMA), the latter to be above the medium time period SMA and the medium time period SMA to be above the long run SMA. All SMAs additionally must have a optimistic gradient.
Taking a look at the place the worth is and the association of the 10, 55 and 200-day SMAs, all of those circumstances have been met. It ought to be famous although that previous efficiency will not be indicative of future outcomes.
Moreover the latest excessive of 114.971, resistance could possibly be on the pivot factors of 114.450 and 114.735.
On the draw back, attainable help could lie on the earlier lows of 113.589 and 112.727, the pivot factors at 112.079 and 110.802 or the lows from August and September of 109.113 and 108.723.
Chart created in TradingView
EUR/JPY – Technical Evaluation
Going into the top of final week, EUR/JPY noticed important weakening that threatened the earlier low 127.934. It made a low of 127.981 and these ranges would possibly present help if examined.
On that run down, it broke exterior the 21-day based mostly Bollinger Band, despite the fact that the width of the bands expanded with rising volatility. It moved exterior after which contained in the decrease band 3 times which could point out market uncertainty.
Resistance could possibly be provided on the latest excessive of 130.083 or on the pivot level of 131.479. Ought to a sustainable rally get underway, resistance may additionally be discovered on the earlier highs of 132.563, 132.919, 133.481 and the June peak of 134.124. There’s additionally a descending pattern line that presently intersects at 131.60.
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter
DailyFX offers foreign exchange information and technical evaluation on the developments that affect the worldwide forex markets.