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
Bearish
Gold
Bearish
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
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • HSBC share price tumbled 3.2% after Chinese media agency Global Times reported that Beijing is considering putting HSBC into its Unreliable Entity List (UEL). Hang Seng Index fell 0.7% in early Asia trading hours. https://t.co/zrUCkWmH1w
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/Dx6UMk2g1c
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.53% Oil - US Crude: 0.35% Gold: 0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/BjCmKqaBM8
  • The two-day closure of the Japanese markets suggests that liquidity in both equity and forex could be thin, rendering #USDJPY and #Nikkei225 futures susceptible to large swings, should there be surprising news. Read more here: https://www.dailyfx.com/forex/market_alert/2020/09/21/Nasdaq-100-to-Test-100-Day-SMA--Hang-Seng-and-ASX-200-May-Open-Flat.html https://t.co/5fTJl1ytSe
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.25% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.20% 🇪🇺EUR: 0.16% 🇳🇿NZD: 0.14% 🇨🇭CHF: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ajs1wgZFD2
  • #Market Snapshot Broad risk-on tilt to kick off a fresh week of trade as the risk-sensitive $AUDUSD jumps back above the 0.73 mark. Haven-linked $USD drifting lower against its major counterparts while $JPY attempts to peg back lost ground. https://t.co/yWVnyRKfbT
  • The US #Dollar may fall if demand for haven-linked assets fall after testimonies from Powell and Mnuchin to the House. Better-than-expected data may compound the Greenback’s selling streak. Get your #currencies update from @ZabelinDimitri here: https://t.co/HRjFvPKlvx https://t.co/n2IMVDqpZn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.06%, while traders in NZD/USD are at opposite extremes with 71.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/eoCmgXp0MN
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/QVVQkoSwMW
  • The S&P 500 index may struggle in the near term – drifting sideways within the bounds of its Bollinger Band – but the overall trend still looks bullish. Get your #equities update from @margaretyjy here: https://t.co/BysksU7lWj https://t.co/UV0hFkZBte
Japanese Yen Technical Analysis: USD/JPY Rediscovers Its Uptrend

Japanese Yen Technical Analysis: USD/JPY Rediscovers Its Uptrend

2017-12-20 02:30:00
David Cottle, Analyst
Share:

Talking Points:

  • USD/JPY/s modest near-term uptrend appears to be back on track
  • However, broad range-trade looks likely into year-end after which the bulls have work to do
  • EUR/JPY’s long stall shows no sign of ending either way, but traders still have plenty to play with

Is your Bitcoin knowledge a little shaky? Don’t worry, the DailyFX free guide is here.

The Japanese Yen staged a little fightback last week.

The gains it logged against the US Dollar on the 13th and 14th shook USD/JPY out of the short-term uptrend channel which had previously been in place since November 27. However, the US Dollar has steadied a little since, to the point where the old uptrend is back on track, just.

Japanese Yen Technical Analysis: USD/JPY Rediscovers Its Uptrend

However, as you can see from the chart above USD/JPY is still very much bumping along the channel’s base having decisively rejected an attempt at the top last week. We’re now approaching the time of year when many financial markets face substantial thinning as participants take their holiday breaks. Official holidays will be unofficially lengthened in many cases and trading desks will likely be thinly staffed until at least the first week of 2018.

With this in mind it’s possible that USD/JPY will settle into broad range trade. The likely range boundaries appear to be December 12’s intraday high of 113.76 to the upside and December 6’s low of 112.00 below. December 1’s wide intraday range could also play a role here, and that day’s intraday low of 111.38 might also be worth keeping in mind.

Japanese Yen Technical Analysis: USD/JPY Rediscovers Its Uptrend

The wildcard here is probably not technical so much as fundamental. The US Dollar has been driven largely by tax reform’s tortured passage through Congress in recent weeks, a passage which seems to be finally nearing its end.

Once it does, dollar bulls probably need to reassert their claim to early November’s highs if they are not to look ever more ominously like some sort of market cap.

Japanese Yen Technical Analysis: USD/JPY Rediscovers Its Uptrend

A bearish moving average crossover occurred at the end of November, when the 20-day average crossed below its 50-day counterpart. That, too suggests that those highs may prove a big ask.

But that struggle is likely to await the new year.

The Euro meanwhile remains stymied against the Japanese currency. EUR/JPY booked quite impressive climbs earlier this year. They had a solid fundamental basis as Eurozone economic data improved and the European Central Bank inched closer to removing monetary accommodation even as Japan’s stimulative spigots were left wide open.

However, the climb stalled in September and has remained in effective stasis ever since. That’s not to say that traders have had nothing to play with. Selling on approaches to 134.50 and buying on dips to 131.00 would have served them well ever since.

Japanese Yen Technical Analysis: USD/JPY Rediscovers Its Uptrend

As 2017 draws to a close there is no obvious sign on the chart that it won’t continue to do so.

--- 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