News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Heads Up:🇺🇸 Fed Bostic Speech due at 13:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-02-25
  • Heads Up:🇺🇸 Initial Jobless Claims (20/FEB) due at 13:30 GMT (15min) Expected: 838K Previous: 861K https://www.dailyfx.com/economic-calendar#2021-02-25
  • Heads Up:🇺🇸 Jobless Claims 4-week Average (FEB/20) due at 13:30 GMT (15min) Previous: 833.25K https://www.dailyfx.com/economic-calendar#2021-02-25
  • Heads Up:🇺🇸 Continuing Jobless Claims (13/FEB) due at 13:30 GMT (15min) Expected: 4467K Previous: 4494K https://www.dailyfx.com/economic-calendar#2021-02-25
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.47% 🇨🇦CAD: 0.26% 🇦🇺AUD: 0.17% 🇨🇭CHF: 0.06% 🇬🇧GBP: 0.06% 🇯🇵JPY: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Utjdxee0Lr
  • Heads Up:🇺🇸 GDP Price Index QoQ 2nd Est (Q4) due at 13:30 GMT (15min) Expected: 2% Previous: 3.3% https://www.dailyfx.com/economic-calendar#2021-02-25
  • Heads Up:🇺🇸 Durable Goods Orders Ex Transp MoM (JAN) due at 13:30 GMT (15min) Expected: 0.7% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-02-25
  • Heads Up:🇺🇸 GDP Growth Rate QoQ 2nd Est (Q4) due at 13:30 GMT (15min) Expected: 4.2% Previous: 33.4% https://www.dailyfx.com/economic-calendar#2021-02-25
  • Heads Up:🇺🇸 Durable Goods Orders MoM (JAN) due at 13:30 GMT (15min) Expected: 1.1% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2021-02-25
  • Heads Up:🇨🇦 Average Weekly Earnings YoY (DEC) due at 13:30 GMT (15min) Previous: 6.6% https://www.dailyfx.com/economic-calendar#2021-02-25
Technical Analysis: Japanese Yen Stronger Than It Might Look

Technical Analysis: Japanese Yen Stronger Than It Might Look

David Cottle, Analyst

Talking Points:

  • The Yen is quietly but implacably strengthening against the US Dollar
  • USD/JPY has moved into a modestly lower range in the last week or so
  • The Australian Dollar is doing a lot better against the Japanese currency

Get live coverage of all major Yen-moving events, with the DailyFX Webinars

The Japanese Yen has arguably been busy doing, if not nothing, then nothing much against the US Dollar on a daily basis ever since May 16 and 17’s sharp slide.

The 28 sessions since have seen relatively narrow, range-bound trade between 111.80 to the upside and 109.28 to the down. The range may have been made slightly lower by June 6’s fall to 109.38. This looks like near-term support to conjure with, incidentally, as it also held falls on Wednesday of this week, and provided a platform for subsequent gains.

Technical Analysis: Japanese Yen Stronger Than It Might Look

However, if we take a look further back, this harmless looking meander assumes a more sinister form, at least for USD/JPY bulls.

An impressive run of gains froim April 17 to May 10 snapped a downtrend which had been in place since March 10. However, another downtrend soon asserted itself which has been threatened but not yet conclusively broken by the past two sessions’ gains.

Technical Analysis: Japanese Yen Stronger Than It Might Look

Looking at the above the most likely scenario is that USD/JPY continues to drift lazily lower. The problem, again for bulls, is that support line you can see at the bottom of that chart. It represents the lows for the year so far, made on April 18.

The trend strognly suggests that that prop will face a retest, possibly quite shortly. If it cannot hold then we would be back to lows not seen since November 2016 and, possibly, a threat to the whole climb up from the 99.90 area seen in the months before that.

It’s probably worth noting that USD/JPY doesn’t look obviously overbought or oversold at this point, which may suggest that extreme moves either way will face resistance.

Things look a lot better for the Australian Dollar against the Japanese currency.

AUD/JPY has turned in a nice run of gains, stretching now to nine of the last eleven trading sessions. However, celebrations may yet be premature. The 2017 downtrend remains in place, and seems likely to for some time. It comes it at around JPY85.20 at the moment, appreciably above current price levels.

Technical Analysis: Japanese Yen Stronger Than It Might Look

Still, the cross is very close to previous highs, made on May 18 in the mid JPY84 area. Some daily or weekly closes above those might go a long way to shore up confidence.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES