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
Bearish
Oil - US Crude
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
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Bank of Japan to mull widening of its long-term yield band -BBG $USDJPY
  • While the rise in longer-dated Treasury yields have been impressive as of late, March highs remain a key focus for resistance The medium-term uptrend remains intact, maintained by rising support from August Fading fiscal stimulus expectations (size) may sour yields ahead https://t.co/L3vBcF0ts7
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/vFJ8zmphMm
  • While the US Dollar has been holding its ground, its downside bias against the Singapore Dollar, New Taiwan Dollar Thai Baht and Indonesian Rupiah remains intact as it hovers at support. Get your market update from @ddubrovskyFX here: https://t.co/p7gAztWuVG https://t.co/zB1pOS6U4D
  • The $VIX is now running 227 trading days above the 20 handle. It is also working its way quickly into a dead-end descending triangle. These don't really break lower... https://t.co/39Pr7YrQ08
  • WTI Crude amongst the many market participants taking a hit today, down almost 3% $WTI $USD https://t.co/eg2phm1wUO
  • The power of suggestion: even though the market recognized the mistake with mixing Tesla founder Musk's suggestion to use the Signal app with the stock SIGL, it is still trading >2,000% above pre-remark levels and maintains heavy volume. Us speculators are an interesting people
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.07% 🇨🇭CHF: -0.35% 🇪🇺EUR: -0.65% 🇨🇦CAD: -0.75% 🇦🇺AUD: -0.95% 🇳🇿NZD: -1.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6NZVebT00L
  • one final $BTCUSD chart ahead of the weekend bc I think this is going to remain on the move. 35k support has held for now, but prices are testing a big zone of prior resistance (same that held the high on tues morning). break down/out levels in purple below $BTC #Bitcoin https://t.co/TeLrBYJXty https://t.co/MewVjXNrRT
  • Silver selling off during trade, now down over 3% $XAG $USD https://t.co/V69rLJMYcC
Japanese Yen Weekly Technical Outlook: Charts Spell Trouble for Yen

Japanese Yen Weekly Technical Outlook: Charts Spell Trouble for Yen

2018-09-16 06:00:00
Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- The Japanese Yen was the worst performing currency last week, with GBP/JPY surging by +2.08% and still poised for more gains.

- Retail traders have been quick to sell USD/JPY rallies, suggesting that price gains are still likely in the near-term.

- The EUR/JPY breakout attempt has stalled at the July 31 and August 1 swing high near 131.10/15, but clearance would open up the July high at 131.99 as a target.

See our long-term forecasts for the Japanese Yen and other major currencies with the DailyFX Trading Guides.

Technical Forecast for the Japanese Yen: Bearish

The Japanese Yen had a rough week, erasing all of its gains in September across the board in the process: USD/JPY is now up by +0.93% on the month after gaining +0.96% between September 9 and 14. The same can be said of the best performing cross last week, with GBP/JPY adding +2.12% over the past week, which is now up by +1.77% in September overall.

The technical damage done across the various crosses is widespread enough to consider the coming week a critical juncture for the Japanese Yen. The importance of the coming week is only underscored by the near-term outlook for the Nikkei 225, which has turned bullish following its breakout attempt. As if typically the case, a weak local currency typically goes in hand with a strong local stock market; it is no coincidence that Japanese Yen appears to be on the verge of weakness versus the British Pound, Euro, and US Dollar (among others) as the Nikkei 225 gets ready to trade higher.

USD/JPY Price Chart: Daily Timeframe (January to September 2018)

Japanese Yen Weekly Technical Outlook: Charts Spell Trouble for Yen

Bullish momentum is picking up among many of the JPY-crosses and breakout conditions are afoot. In USD/JPY, price closed the week at 112.05, clearing out the downtrend from the July 19 and September 5 highs in the process. Price has yet to close above the August 1 swing high at 112.15, but we did see USD/JPY peak through the resistance, hitting a high of 112.17 last week.

Overall, with price comfortably above its daily 8-, 13, and 21-EMA envelope, and both daily MACD and Slow Stochastics trend higher above their respective signal or neutral lines, the near-term outlook for USD/JPY has turned bullish. A return back to the July high at 113.18 is targeted; invalidation at present time would occur below the September low of 110.38.

GBP/JPY Price Chart: Daily Timeframe (January to September 2018)

Japanese Yen Weekly Technical Outlook: Charts Spell Trouble for Yen

GBP/JPY may have the most favorable technical conditions in the near-term, of the three pairs reviewed in this note. Several key technical hurdles have already been cleared to the topside with last week’s close at 146.40: the late-August swing high; the downtrend from the April and July highs; and the 38.2% retracement of the yearly trading range.

Overall, price is solidly above its daily 8-, 13, and 21-EMA envelope, and both daily MACD and Slow Stochastics continue to trend higher above their respective signal or neutral lines. As such, the near-term outlook for GBP/JPY is bullish. Clearance of the August 1 high at 147.15 would necessitate an upgraded outlook for additional time, ultimately targeting the July high near 149.31. A move below the late-August swing high at 145.69 would give cause to reduce the near-term outlook from bullish to neutral.

EUR/JPY Price Chart: Daily Timeframe (January to September 2018)

Japanese Yen Weekly Technical Outlook: Charts Spell Trouble for Yen

EUR/JPY’s chart is more similar to GBP/JPY than USD/JPY, although EUR/JPY lacks a bullish catalyst in the form of shifting Brexit outcomes the way that GBP/JPY does. Nevertheless, price now finds itself trading through the downtrend off of the February and July highs, attempting its second breakout higher in three weeks following its close at 130.24 on Friday.

The seeds have been planted for more gains in the days ahead, although clearing out the August 1 high at 131.15 would give greater confidence in such an outlook. Despite Friday’s down day, EUR/JPY continues to hold above its daily 8-, 13, and 21-EMA envelope, and both daily MACD and Slow Stochastics trend higher above their respective signal or neutral lines. The nascent bullish outlook would receive a vote of confidence by clearing out 131.10/15, which would raise the possibility of a retest of the July high near 131.99.

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

OTHER TECHNICAL FORECASTS:

Australian Dollar Forecast - AUD/USD Breakout Struggles, EUR/AUD Risks Reversing to August Lows

Euro Forecast - Euro Stalls at Wall of Resistance

US Dollar Forecast - Dollar Is Closing in On a Break that Either Extends Trend or Triggers Reversal

Equities Forecast - Dow, S&P 500, DAX, FTSE and Nikkei

--- Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher, email him at cvecchio@dailyfx.com

Follow him in the DailyFX Real Time News feed and Twitter at @CVecchioFX

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

DISCLOSURES