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
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • The recent surge in the Treasury market has pushed the benchmark 10Y yield back above the S&P 500 dividend yield https://t.co/x28BFkmjNv
  • S&P 500 on the verge of getting separation from March trend-line. Nasdaq 100 below March trend-line, triggering H&S pattern. Get your #equities market update from @PaulRobinsonFX here:https://t.co/quhMgBpoiq https://t.co/n0jtTnVNwl
  • Japanese Gov't recommends 2-week extension of Tokyo virus emergency - BBG $JPY
  • While the rise in yields is weighing on risk trends, carry trade didn't seem to take the hit. In fact, the charge in US yields seems to have far outweighed the de-risking from $USDJPY's perspective: https://t.co/KpOpgopOep
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.09% 🇬🇧GBP: -0.40% 🇦🇺AUD: -0.69% 🇳🇿NZD: -0.81% 🇯🇵JPY: -0.90% 🇨🇭CHF: -0.97% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8Tvotykz9y
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.33% Gold: -0.69% Silver: -2.64% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/faJTbi16VK
  • AUD/USD now off daily lows, remains much weaker as a result of broad US Dollar strength $AUDUSD https://t.co/OkdKWbepAR
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.13%, while traders in GBP/JPY are at opposite extremes with 70.14%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/XXOjh5LmaB
  • Silver price action stalls between Moving Averages. Platinum prices currently confined by Fibonacci Support. Get your market update from @Tams707 here:https://t.co/Nbl8FDmfps https://t.co/VyuZzP8w2q
  • US Markets at the Close $NDX 12464.0 -1.73% $SPX 3768.49 -1.34% $DJI 30924.14 -1.11%
Japanese Yen Technical Analysis: Key Retracement Holds USDJPY

Japanese Yen Technical Analysis: Key Retracement Holds USDJPY

David Cottle, Analyst

JAPANESE YEN TECHNICAL ANALYSIS TALKING POINTS:

  • The Japanese Yen has made back some ground against the US Dollar
  • However it remains in a quite well established range which has yet to break
  • GBP/JPY’s upside push looks more threatened

Find out what foreign exchange traders make of the Japanese Yen’s chances right now at the DailyFX Sentiment Page.

The Japanese Yen is tracking a little higher against the US Dollar, but in reality USD/JPY remains stuck in the broad trading range which has just about contained all the action since April 23.

I say just about because the pair did manage to poke above the range top of 110.23 in mid-May. Indeed it managed to stay there for a week or so. However as that period gets ever more distant, the more spurious that rise looks.

Japanese Yen Technical Analysis: Key Retracement Holds USDJPY

US Dollar to Japanese Yen, Daily Chart

For the moment at least it might be wise to trade as though this range were really all you have to play with. The downside is formed by 108.09, which was May 29’s intraday low. Interestingly it is also almost exactly where we can find the important 50% Fibonacci retracement of the rise from the lows of late March to the May’s highs.

Japanese Yen Technical Analysis: Key Retracement Holds USDJPY

US Dollar Vs Japanese Yen, Daily Chart, With Fibonacci Retracement Levels.

That point seems to be quite formidable support, and should hold if tested. One problem for US Dollar bulls might be that the daily chart could be forming rather a classic ‘head and shoulders’ formation. If so this would be bad news because it might suggest reversal of that climb, at least, is in the offing.

However, while that key support level holds it is possible that those bulls may yet be able to use it as a platform for some sort of comeback.

Meanwhile the UK Pound’s uptrend against the Japanese currency endures, but only just. That channel has been in place since late May and looks to be enduring a downside test around current levels, so watch the next couple of days’ closes with interest.

Japanese Yen Technical Analysis: Key Retracement Holds USDJPY

GBP Vs JPY, Daily Chart

Channel failure will put the recent lows back in uncomfortable focus for Sterling bulls. Moreover, even if the channel holds, those many consecutive red candles between May 18 and May 29 still look like a pretty fearsome obstacle.

RESOURCES FOR TRADERS:

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES