Japanese Yen, USD/JPY, AUD/JPY, EUR/JPY, GBP/JPY – Technical Forecast
- The Japanese Yen has been seeing some gains against its major peers
- USD/JPY is a standout, though the broader uptrend seems exhausted
- AUD/JPY, EUR/JPY and GBP/JPY face their next test if losses hold
USD/JPY Technical Outlook - Neutral
The US Dollar has generally been on a tear against the Japanese Yen this year. But, recent price action is showing signs of exhaustion. USD/JPY left behind multiple Doji candlestick patterns this past week. This is a sign of indecision that is being coupled with negative RSI divergence. The latter shows fading upside momentum. As such, the technical outlook is neutral. Breaching resistance at 136.70 would shift the outlook increasingly bullish, exposing the 78.6% Fibonacci extension at 139.67. Otherwise, falling under rising support from February would offer a bearish view.
Daily Chart
AUD/JPY Technical Outlook – Slightly Bullish
The Australian Dollar has been weakening against the Japanese Yen since the beginning of June. Granted, this has been a slow process. AUD/JPY appears to be consolidating lower within the boundaries of a bullish Falling Wedge chart formation. A breakout above could open the door to resuming the uptrend. Such an outcome would place the focus on the current 2022 high at 96.88. The latter is also just under the May 2015 peak at 97.30. On the other hand, a turn lower below the rising trendline from February could shift the outlook bearish, exposing the May low at 87.30.
Daily Chart
EUR/JPY Technical Outlook – Slightly Bearish
The Euro has been weakening against the Japanese more aggressively than the Australian Dollar in recent weeks. In fact, EUR/JPY has broken under a rising trendline from March, confirming the breakout with subsequent closes lower. This is offering a downward view for the days ahead. Traders ought to keep a close eye on the 100-day Simple Moving Average (SMA). The latter may step in as support, pivoting prices higher. Otherwise, further losses expose the May low at 132.66.
Daily Chart
GBP/JPY Technical Outlook - Neutral
The British Pound has also been weakening against the Japanese Yen lately. Unlike EUR/JPY, GBP/JPY is still above the rising trendline from March. This is offering a neutral technical outlook for the week ahead as the line could play out as support, pivoting the pair back higher towards the 167.60 – 168.72 resistance zone. Otherwise, a breakout under would shift the outlook bearish. That would subsequently place the focus on the 200-day SMA.
Daily Chart
--- Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
