GBP/JPY, AUD/JPY, CAD/JPY & CHF/JPY at Resistance
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Right now, from where I sit it’s an in-between period in terms of high-quality set-ups, but that doesn’t mean things aren’t working their way towards becoming good set-ups. Looking at the yen-crosses, a few of them are at resistance which offers a sign of caution for existing longs off recent lows and potentially attractive spots for would-be shorts.
GBP/JPY’s aggressive rally off the low is now at a confluence of trend-lines of varying degrees; one runs down from the May high and the other is the underside of a trend-line rising up from April 2017. It’s a good spot to look for weakness to set in, and depending on how hard it turns lower it could become a continuation trade back below the monthly low.
GBP/JPY Daily Chart (At cross-road of trend-lines)
AUD/JPY has a differing type of resistance standing in its way than sterling-yen – price resistance. There are several prior turn points from around the current vicinity which need to be overcome before the cross can trade higher. Resistance might keep the generally range-bound price action from March in place.
AUD/JPY Daily Chart (Trading at Price resistance)
CAD/JPY turned down yesterday from resistance carved out in April and May, and has potential to put in a bearish head-and-shoulders if weakness from here can become a theme. In any event, the area from here up to 8575 is viewed as steadfast resistance and acts as a ceiling for now.
CAD/JPY Daily Chart (Pulling off from resistance, H&S Forming?)
CHF/JPY is still trying to power higher this morning, but as is the case with others it has plenty of resistance to contend with. A reversal from here up to the ~11225 area will have eyes focused on a retracement, at the least, of the recent rally.
CHF/JPY Daily Chart (Watch for turn off resistance)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.