Japanese Yen Technical Analysis: Failure Beckons At Range Top
- USD/JPY seems to have botched in another attempt at its range top
- This is not confirmed yet, but looks likely to be
- GBP/JPY has broken its channel top, but not very convincingly
The US Dollar seems to have faded out at a cluster of key resistances, which collectively represent the most significant recent daily-chart highs, made in late February. They come in in the 104.40-107-80 region, from which USD/JPY retreated quite sharply on Monday.
IF BULLS ARE GOING TO ACT, THEY NEED TO DO IT SOON
It’s possibly still a little early to say conclusively that this push higher has failed, but it’s looking peaky to see the least and the bulls probably have only a day or two to get it back on track.
Immediate support for the US Dollar is likely in a band between last week’s lows around 106.62 and April 5’slow of 105.69. If those give way, matters will get a little more serious for the bulls with the lows of late March around 104.60 coming into focus.
Should failure at the range top be confirmed this week, the trading bias will remain to the downside, with those range lows at 104.59 beckoning.
GBP/JPY HAS PIECED ITS CHANNEL TOP
Meanwhile the British Pound has been on something of a tear against all its major rivals, including the Yen. UK economic data continue to hold up on the whole, and markets still wonder whether the Bank of England might be moved to increase interest rates this month.
GBP/JPY has just broken above the uptrend channel which had guided it higher since md March. However, it has not done so very convincingly and the cross seems to be retreating back toward that range.
Near-term support is likely to come in at the lows of Tuesday and Thursday last week, assuming that the Pound beaks conclusively back into that uptrend band.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.