Japanese Yen Outlook: USD/JPY, CAD/JPY Price Action Set-Up
Japanese Yen Price Analysis & News
USD/JPY | Tight Range to Persist Into the New Year
A more subdued session for USD/JPY after yesterday’s rebound stalled around the high 103s. The path of least resistance remains lower for the pair, particularly as US 10yr yields remain capped at 1%. However, as it stands, USD/JPY looks to continuing trade within a relatively tight 102.80-104.00 range into the new year. Elsewhere, recent reports stating that Japanese PM Suga had reportedly told the Japanese Finance Minister to make sure USD/JPY does not cross 100.00 (around the time of the US election) does potentially set a limit as to how much lower could the pair go. On the technical front, topside resistance sits at 103.90-104.00 with support at 102.85-103.00.
Pivot | 103.47
Support | 103.06, 102.82, 102.41
Resistance |103.71, 104.12, 104.53
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USD/JPY Chart: Daily Time Frame
CAD/JPY | Support Eyed Amid Breakdown
The cross has extended its bearish price action since the rejection of the 82.00 handle. Alongside this, yesterday’s break below the short-term trendline keeps risks tilted to the downside for CAD/JPY with the cross now testing key support in the form of the 50 (80.15) and 100DMA (80.08). That said, as oil prices also begin to roll over amid concerns of a new strain of COVID, this adds to downside pressures for the cross. In turn, a break below the psychological 80.00 handle raises the risk of an extended move towards the 50% Fib (YTD peak to YTD low) at 79.29 and the 200DMA residing at 78.99.
Pivot | 80.45
Support | 80.01, 79.69, 79.25
Resistance | 80.77, 81.21, 81.65
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CAD/JPY Chart: Daily Time Frame
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