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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • The outlook for the $EURUSD pair has worsened after its failure to move back to the high just above 1.20 touched on September 1 despite the #ECB’s decision earlier this month not to talk down the Euro. Get your #currencies update from @MartinSEssex here: https://t.co/kDCHxHgGlU https://t.co/Li4jHqaNdC
  • #USDollar Outlook Bearish on Mnuchin & Powell Testimonies, Key US Data ⬇️ https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2020/09/20/US-Dollar-Outlook-Bearish-on-Mnuchin-Powell-Testimonies-Key-US-Data.html
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/fuWSUDE1pT
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eRTdlhAOFN
  • The Japanese #Yen may continue to exhibit a bullish behavior as the Bank of Japan (BoJ) appears to be in no rush to alter the path for monetary policy. Get your #currencies update from @DavidJSong here: https://t.co/HFjc6KGzRw
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here: https://t.co/CPxP1Q8B6d https://t.co/n2wESiqnpJ
  • The US Dollar may rise against ASEAN currencies like the Singapore Dollar if local retail sales and sentiment data disappoints. USD/IDR may fall on the Bank of Indonesia. Get your market update from @ddubrovskyFX here:https://t.co/HpH8pXFdLl https://t.co/laHmaZXpJe
  • The US Dollar may rise against the Singapore Dollar and Philippine Peso. USD/MYR’s downtrend holds, but a bullish pattern brews. USD/IDR seems stuck between key technical levels.Get youe #ASEAN currencies market update from @ddubrovskyFX here:https://t.co/TF6DRVp6kX https://t.co/WEtxkdSwxD
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/4wlRjBTCzK
  • The #Dollar has bottoming potential, but that is starting to lose weight as it fails to sustain any lift; next week could be a big one for #USD’s near-term outlook. Get your #currencies update from @PaulRobinsonFX here: https://t.co/IifHjik7gM https://t.co/R9b4jdTPnO
Japanese Yen Technical Analysis: USD/JPY Tests Key Resistance

Japanese Yen Technical Analysis: USD/JPY Tests Key Resistance

2017-07-07 04:35:00
David Cottle, Analyst
Share:

Talking Points

  • USD/JPY is currently undergoing what could be a crucial nea- term test
  • If the bears win then this year’s long downtrend will endure
  • Things look better for GBP/USD, but the year’s peak looms ahead

Find out where your currency-of-the-moment stands in the trading community’s affections at the DailyFX sentiment page

In my last technical look at USD/JPY, I suggested that May 15’s closing high of 113.76 might provide bulls with their first real test of the current, impressive uptrend.

The US Dollar posted two days of sharp falls after making it, suggesting that it might be quite a formidable barrier. Indeed, it proved to be so just this week with Wednesday’s intraday high coming in at exactly that point. However, at the time of writing (0230 GMT Friday), USD/JPY has just managed to top 113.76 for the first time since it made the high back in mid-May, if only by a whisker so far.

Japanese Yen Technical Analysis: USD/JPY Tests Key Resistance

If bulls can force the pace and bring about a daily (and, at this point, weekly) close above it, then the last significant top, May 10’s 114.30, will beckon. Above that looms March 13’s 115.41 and the year’s highs beyond.

However, if we take a few steps back and look at the chart we can see that that May 10 peak is crucial. If the current uptrend fails below it then we will have seen a second significant lower high and long, gradual downtrend in place for all of 2017 will continue its dominance.

Japanese Yen Technical Analysis: USD/JPY Tests Key Resistance

Meanwhile the British Pound has also managed a good showing against the Japanese currency and may also be facing a key test. GBP/JPY has closed higher for 19 of the past 22 trading days. The fundamental news behind this gain is that the Bank of England has struck a more hawkish policy tone while the Bank of Japan remains committed to extraordinarily loose monetary settings.

That variance has taken GBP/JPY to within a very short distance of 2017’s high, the 148.10 struck on May 10. However, the climb to that high involved lots of successive green candlesticks followed by a more gradual slide. History might well repeat itself.

Sterling’s Relative Strength Indicator nudging up toward what most analysts would consider overbought territory. While the cross may yet reach and even surpass that May peak, it’s doubtful that the bulls have too much more gas in the tank.

Japanese Yen Technical Analysis: USD/JPY Tests Key Resistance

--- 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