Japanese Yen May Decline versus Euro, British Pound

The Euro/Japanese Yen remains within a short-term uptrend channel, but the pair has shown difficulty surpassing key Fibonacci resistance at 131.00 and 127.70. Said levels respectively represent the 61.8 percent and 50.0 percent Fibonacci retracements of the 141.80-113.60 move. Continued failures at both resistance marks would invite a move towards previous resistance near 124.40, but the pair otherwise remains in the middle of a makeshift trend channel—inviting further rallies through the near term.





The British Pound/Japanese Yen is starting to show signs of a makeshift bottom, as weekly oscillators have registered their most extremely oversold conditions in over 20 years and subsequently reversed. The short-term picture is less clear, but the pair continues to hover near its lowest levels since 1995. It is obviously dangerous to advocate going long against such immensely bearish momentum, but we have begun to see signs that price may in fact consolidate and hold its bottom.





The Swiss Franc is one of the few currencies to have rallied against the Japanese Yen through recent trade, and recent strength leaves it at the top of its recent falling trend channel. Resistance at a falling trendline likewise coincides with the 50.0 percent Fibonacci retracement of the 98.70-74.60 move near 86.70, and said level could prove a challenging price ceiling through the near term. A hold of 86.70 would signal that a short-term pullback is likely.





The Canadian Dollar/Japanese Yen continues to hold multi-year lows near the psychologically significant 70.00 mark, and we increasingly see signs that the pair has set a medium-term base. Weekly oscillators hit their most extremely oversold levels in at least 20 years, as recent selling pressures have been nothing short of spectacular. Through the shorter-term, we see that the pair remains within a tight 70.50-75.70 range, but a break above 75.70 would signal that a further rally towards subsequent spike highs at 79.40 is likely.





The Australian Dollar/Japanese Yen likewise shows signs of a medium term base, as the pair has recovered from substantial lows in convincing fashion. More recently the pair has been trading in an increasingly narrow wedge formation, and we believe that a break to the topside is the more likely outcome. A rally above 63.60 targets a move to 65.00 and the psychologically significant 70.00 mark.





Short-term New Zealand Dollar/Japanese Yen chart patterns signal that the pair is likely to continue its rallies through upcoming trade. Subsequent resistance is seen at a makeshift double-top near 54.00, and a further rally would likely take the pair to the 61.8 percent Fibonacci retracement of the 61.60-47.80 move at 56.40. A break below recent congestion levels near 51.00 would negate our short-term bullish bias.



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