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.

Free Trading Guides
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
Oil - US Crude
More View more

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • 🇺🇸 (USD) Philadelphia Fed Business Outlook (SEP), Actual: 12.0 Expected: 10.5 Previous: 16.8 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • 🇺🇸 (USD) Initial Jobless Claims (SEP 14), Actual: 208k Expected: 213k Previous: 206k https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • WTI Oil Price Outlook: Sharp Moves, Nasty Headlines, Levels to Know https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2019/09/19/wti-crude-oil-price-outlook-sharp-moves-nasty-headlines-levels-to-know-js52-oil-chart.html https://t.co/mjwcK3S0uC
  • 🇺🇸 (USD) Continuing Claims (SEP 7), Actual: 1661k Expected: 1672k Previous: 1674k https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.85%, while traders in France 40 are at opposite extremes with 82.89%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/QfI3m1UEqZ
  • RT @business: Iran’s foreign minister warns that any U.S. or Saudi strike on his country would lead to “all-out war” https://t.co/i6O5k2IBqu
  • Heads Up:🇺🇸 USD Continuing Claims (SEP 7) due at 12:30 GMT (15min), Actual: N/A Expected: 1672k Previous: 1670k https://www.dailyfx.com/economic-calendar#2019-09-19
  • Heads Up:🇺🇸 USD Initial Jobless Claims (SEP 14) due at 12:30 GMT (15min), Actual: N/A Expected: 214k Previous: 204k https://www.dailyfx.com/economic-calendar#2019-09-19
  • Heads Up:🇺🇸 USD Philadelphia Fed Business Outlook (SEP) due at 12:30 GMT (15min), Actual: N/A Expected: 10.5 Previous: 16.8 https://www.dailyfx.com/economic-calendar#2019-09-19
  • Heads Up:🇨🇦 CAD ADP Canada Releases Aug. Payroll Estimates due at 12:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2019-09-19
Japanese Yen Technical Analysis: USDJPY Uptrend Under Threat

Japanese Yen Technical Analysis: USDJPY Uptrend Under Threat

2017-11-08 03:30:00
David Cottle, Analyst

Talking Points:

  • USD/JPY is testing the lower boundary of a crucial uptrend
  • Supper nearby seems likely to hold if it breaks
  • The New Zealand Dollar looks set for more gains against the Japanese currency

New to the Japanese Yen trading world? Our beginners’ guide is all yours

Japanese Yen bulls are having a better time of it against the US Dollar this week and, indeed, have forced USD/JPY down to what may be a critical juncture.

On its daily chart the pair is testing the downside of channel support in place since the current climb started back on September 7. That support comes in within a whisker of current levels (as of 0100 GMT Wednesday), at 113.76. US Dollar bulls are going to have to work hard to secure a daily close above this level and keep the channel intact.

They may well feel encouraged if they can, of course. The putative channel base has so far only been tested once, at the end of October. One more successful trial would validate the channel still further.

Japanese Yen Technical Analysis: USDJPY Uptrend Under Threat

However, should they fail to defend that downside then what happens next will be crucial. The case could be made that a period of consolidation might ensue, with USD/JPY trading a wide band between the recent high of 114.72 and the recent low of 112.58 before shaking out stale bulls and heading higher again.

Those betting against the Dollar will probably have to force the Yen below those levels in quite short order if anything more swashbuckling than a consolidative pause is their aim.

Japanese Yen Technical Analysis: USDJPY Uptrend Under Threat

Meanwhile the New Zealand Dollar appears to be doing rather better against the Japanese currency at last. The Kiwi had been under pressure from its home county’s election on September 23 which produced no overall majority. That pressure increased in mid-October with the formation of a coalition government centred on the left-wing Labour party which was not New Zealand Dollar bulls’ first choice to put it mildly.

The currency showed a marked tendency to rise before the vote on the release of any opinion polling which suggested that the then-incumbent National Party would return to power in Wellington.

However, those bulls seem to be warming to the idea, or at least learning to live with it. NZD/JPY remains very much within the downtrend channel seen since late September, but it is edging a little close toward the upper boundary.

Japanese Yen Technical Analysis: USDJPY Uptrend Under Threat

The downtrend line from October 19, when the shape of the new administration became known, is now being challenged on the daily chart. It comes in at JPY79.02. Watch out for daily closes above this level as signs that the New Zealand Dollar is girding itself for a fresh assault on the top of that broader uptrend channel.

Japanese Yen Technical Analysis: USDJPY Uptrend Under Threat

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

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


News & Analysis at your fingertips.