Euro / Japanese Yen
240 Minute Bars
Following a break of the support line drawn off of daily lows in July, the EURJPY quickly rallied to test the 61.8% of the decline from 138.77. Resistance at this level is reinforced by the underside of the former support line. The break and re-test of the line presents a short set-up. Coming below 134.06 would expose 133 and then 131.50.
British Pound / Japanese Yen
240 Minute Bars
The GBPJPY set-up is similar to that of the EURJPY set-up. After breaking below a support line and testing 156.00, the GBPJPY reversed violently today and tested the 50% of the decline from 163.15. Potential resistance extends to the 61.8% at 160.37. Coming under 156.00 would expose 153.80 and 152.30.
Swiss Franc / Japanese Yen
240 Minute Bars
The CHFJPY is in the same position as the EURJPY. Following a support line break, the pair quickly rallied to the 61.8% of the decline from 90.65. Coming under 87.70 would expose 87.00.
Canadian Dollar / Japanese Yen
60 Minute Bars
After soaring above 90, the CADJPY fell in convincing fashion to support near 86.00. Today’s sharp reversal brought the pair back to the 61.8% retracement of the decline from 90.41. 61.8% retracements are common as secondary tops.
Australian Dollar / Japanese Yen
60 Minute Bars
The AUDJPY is in the exact same position as the CADJPY. The strong rally to the 61.8% retracement of the previous decline may lead to formation of a secondary top.
New Zealand Dollar / Japanese Yen
240 Minute Bars
The NZDJPY looks most like the EURJPY. Former trendline support (along with the 61.8% of the decline from 65.96) is now resistance.
Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close. He is also the author of Sentiment in the Forex Market.
Please send comments about this report to jsaettele@dailyfx.com
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