USD/JPY, GBP/JPY Price: US Dollar Rebounds at Support, Pound Holds on
GBP/JPY and USD/JPY Price Outlook
GBP/JPY – USD/JPY- Stronger Japanese Yen Across the Board
At the start of this week, Japanese Yen firmed against main currencies. GBP/JPY printed 128.11- its lowest level in nearly 21 months. In turn, USD/JPY tested yesterday105.49 its lowest in seven months.
At the end of July, the Relative Strength Index (RSI) dipped below 30 on GBP/JPY and remained in the oversold territory, emphasizing the strength of bearish momentum. On the other hand, the oscillator crossed below 50 on USD/JPY indicating to a start of a downtrend move.
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GBP/JPY DAILY PRICE CHART (JAN 8, 2017 – AUG 8, 2019) Zoomed out
GBP/JPY DAILY PRICE CHART (April 15 – AUG 8, 2019) Zoomed IN
Looking at the daily chart, we notice since the start of this week GBP/JPY has been trading ineffectively although, yesterday the pair continued moving in the higher trading zone 128.80 – 130.84. Hence, if the price kept on closing above the low end of this zone, this could send it towards the high end. However, the daily resistance levels underlined on the chart (zoomed in) should be monitored.
On the flip-side, a close below the low end could press the price towards 126.77. Nonetheless, the weekly support vicinity underscored on the chart should be kept in focus.
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USD/JPY DAILY PRICE CHART (FEB 15, 2018 – AUG 8, 2019) Zoomed out
USD/JPY DAILY PRICE CHART (MAY 15 – AUG 8, 2019) Zoomed in
Looking at the daily chart, we notice yesterday USD/JPY rebounded form the low end of the trading zone 105.50 – 107.30 and currently the pair eyes a test of the high end.
Thus, a close above the high end of this zone could cause a rally towards 108.61. However, the weekly resistance levels marked on the chart (zoomed in) need to be watched along the way.
On the other hand, any close below the low end of the zone may send the price towards 104.77. Although, the weekly support level highlighted on the chart would be worth monitoring. See the chart to know more about the lower trading zone and the weekly support levels sellers would encounter in a further bearish scenario.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.