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DailyFX Home / Technical Analysis / Articles / Currency Crosses

Yen Crosses Holding Important Supports For Now

By , Sr. Technical Strategist
12 April 2012 21:04 GMT

Euro / Japanese Yen

Daily Bars

Yen_Crosses_Holding_Important_Supports_For_Now_body_eurjpy.png, Yen Crosses Holding Important Supports For Now

Prepared by Jamie Saettele, CMT

The March low (10564) has held for 2 days now. As the 4th wave of one less degree, 10564 is an important level. Still, more time is probably needed for the EURJPY to fully correct its advance from the January low. Corrections are difficult to trade due to their variability which is why from a trading standpoint it is useful to simply follow the general 3 wave (A-B-C) pattern. Viewed in this manner, the decline from 11142 probably composes wave A (which may not be complete yet either) of the A-B-C decline. Resistance is 10745 and 10845 (I prefer to short into resistance against 11115). Downside levels of interest remain 10465, 10350, and 10220.

Bottom line (next 5 days): sideways

British Pound / Japanese Yen

Daily Bars

Yen_Crosses_Holding_Important_Supports_For_Now_body_gbpjpy.png, Yen Crosses Holding Important Supports For Now

Prepared by Jamie Saettele, CMT

The GBPJPY remains well above its March low (12653) but the idea here is the same as the EURJPY. The decline from 13348 probably composes wave A (which may not be complete yet either) of the A-B-C decline. Resistance is well defined just above 13000 (3/2 high, 3/23 and 3/29 lows and 4/10 high). I favor shorts into resistance against 13325. Downside levels of interest are the March low at 12654 and 2/23 low at 12546.

Bottom line (next 5 days): sideways

Australian Dollar / Japanese Yen

Daily Bars

Yen_Crosses_Holding_Important_Supports_For_Now_body_audjpy.png, Yen Crosses Holding Important Supports For Now

Prepared by Jamie Saettele, CMT

After dipping under former resistance at 8284, the AUDJPY has retraced Tuesday’s entire decline from 8462. Resistance extends to 8520 (3/23 low and 4/6 high) and the downside is favored as long as price is below 8680. A break below 8248 would also indicate a break of the trendline that extends off of the October and November lows and shift focus to the December high at 8053.

Bottom line (next 5 days): sideways

Euro / Australian Dollar

Daily Bars

Yen_Crosses_Holding_Important_Supports_For_Now_body_euraud.png, Yen Crosses Holding Important Supports For Now

Prepared by Jamie Saettele, CMT

The EURAUD drop below 12649 leaves me with little confidence in the call for one more high to complete the advance from 12123. Still, the current levels is defended by trendline support and former pivots (2/27 high and 3/26 low) so this level may prove tougher to crack than most think. Resistance is 12672-12700. Shorts into there with a stop above 12785 is warranted.

Bottom line (next 5 days): sideways/lower

Euro / Canadian Dollar

240 Minute Bars

Yen_Crosses_Holding_Important_Supports_For_Now_body_eurcad.png, Yen Crosses Holding Important Supports For Now

Prepared by Jamie Saettele, CMT

“The January low (12874) is in sight and a break would target the January 2011 (and all of 2011) low at 12776 and then the 2010 (from June) low at 12449…A stop on any shorts should be kept to 13333.” The EURCAD pattern remains bearish against 13333. In fact, the rally from 12943 presents a short opportunity.

Bottom line (next 5 days): down

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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12 April 2012 21:04 GMT