Japanese Yen Outlook: USD/JPY & GBP/JPY Charts to Watch
USD/JPY & GBPJPY Technical Outlook
USD/JPY generally remains a mess with it heading nowhere fast while other currencies make moves. After an upstart in volatility to begin the month things have died down again, with the past week highlighting very tight trading conditions.
It appears the path of least resistance in the near-term is lower, but support not far down right around 10600 may hold as momentum lacks the punch to push it through. Should it break, though, one would think momentum should pick up, but will be a believer when it actually does. On the top-side 10764 is first up as resistance, followed by the 200-day at 10840.
While USD/JPY remains a difficult handle, other JPY pairs have been on the move and present some interesting scenarios.
USD/JPY Daily Chart (directionless)
GBP/JPY has come off a good deal since tagging a trend-line from December. This has a lower slope in play off the March low. Make or break? If it can hold then we could see the upward trajectory at the least stay intact. On the other hand, a break could have the May low at 12929 in play. One possible scenario to watch out for, is a bounce off the parallel that fails and takes out the low created on the sloping threshold. This could initiate a downward trend off the month high with a series of lower-lows and lower-highs developing.
GBP/JPY Daily Chart (watch slope line)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.