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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
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
USD/JPY
Bullish
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
Mixed
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
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Real Time News
  • Currency markets may be battered by breakneck volatility if a slowdown in global economic growth triggers a collapse in the fragile market for collateralized loan obligations (CLOs). Get your market update from @ZabelinDimitri here:https://t.co/KfjjtaXs7b https://t.co/sWeSlv33pb
  • The #Dow Jones and #Nasdaq 100 will await key earnings from some of the world’s largest manufacturers and tech companies while the #DAX grapples with freshly-imposed tariffs. Get your equities market update from @PeterHanksFX Here: https://t.co/u2lG19JFt3 https://t.co/OHs4rQEH7T
  • Crude #oil prices are consolidating above a key support zone we’ve been tracking for more-than three months now. Get your market update from @MBForex here: https://t.co/XaACvEpLG4 #OOTT https://t.co/XjmjUt4Par
  • Why trade with Bollinger Bands®? Find out as a day trader, how you can use it to your advantage:https://t.co/dwODDDSsFi @WVenketas https://t.co/SYduJ5k9mL
  • As the global economy continues to contract, the risk of geopolitical threats undermining financial and economic stability are rising, leaving the door open to violent volatility. Get your market update from @ZabelinDimitri here:https://t.co/2HEzqPobvA https://t.co/k13SwJmbRm
  • RT @IGSquawk: We're currently pricing #GBPUSD at 1.2852 and #FTSE at 7129.2 That's a drop of 1.18% from Fridays close for GBPUSD and 0.22%…
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/K6W9X4v8XD
  • The $NZD may be carving out a near-term bottom against its US counterpart but scope for gains seems limited within a broader downtrend. Get your technical analysis from @IlyaSpivak here: https://t.co/7bsVuSyWMn https://t.co/DsmNYKk8v3
  • Can you trade with the joy of missing out (#JOMO)? Find out how you can turn your #FOMOintrading to JOMO here: https://t.co/G5H26NXZQe https://t.co/pVdKUPzvmk
  • RT @PaulBrandITV: It’s likely that this will end up in court on Monday. The case in the Scottish courts may well consider that this doesn’t…
Japanese Yen Bulls Pause At Key USDJPY Level, May Keep Momentum

Japanese Yen Bulls Pause At Key USDJPY Level, May Keep Momentum

2019-05-29 01:36:00
David Cottle, Analyst
Share:

Japanese Yen Technical Analysis Talking Points:

  • USDJPY’s slide has decelerated sharply
  • The next few trading sessions could offer important clues
  • AUDJPY remains under severe pressure

Join our analysts for live, interactive coverage of all major Japanese economic data at the DailyFX Webinars. We’d love to have you along.

The Japanese Yen is locked in the familiar ‘battle of the havens’ with the US Dollar often seen at times of heightened risk aversion.

The former has enjoyed the upper hand since late April, with USDJPY having retreated notably since then. However, technically speaking, the Yen bulls look to be getting a little exhausted. The pair has come down to lows not previously seen since February, but the Dollar’s slide seems to have been contained here. The point at which its slide seems to have been arrested is interesting.

US Dollar Vs Japanese Yen, Daily Chart

As we can see from the chart above that bearish impulse seems to have petered out around 109.49. Probably not entirely coincidentally that is also the 50% Fibonacci retracement of this year’s rise up from the lows of February to the peaks of late April.

Continued weakness here would bring the next, 61.8% retracement into view but momentum indicators suggest that a period of consolidation will be required around current levels before such a bearish foray could be made to stick. Be wary therefore of any short term probes downward.

If Dollar bulls can hang on then an attempt at the 110.14 point could be seen. This is the 38.2% retracement which gave way last week and now forms near-term resistance. Recapturing that would probably re-energize the upside play considerably but it’s far from certain to be seen anytime soon.

The uncommitted may want wait and see where the weekly and monthly close is relative to all three levels. It could be most instructive.

At the other end of the risk spectrum we find the growth-linked Australian Dollar. In the current fundamental climate it should be no surprise that the Aussie continues to suffer against the Japanese Yen, with general risk aversion accentuated in that currency’s case by sliding bond yields and prognoses of further interest rate cuts ahead.

This toxic cocktail has already seen AUDJPY abandon the broad range which endured for much of this year, with Aussie bulls now desperately trying to build some sort of base just above this year’s January lows.

Australian Dollar Vs Japanese Yen, Daily Chart

It’s arguable that they’ve been quite successful so far given the swathe of fundamental negatives now in this market, but it’s also highly probable that the consolidation we can see in USDJPY has played a part too. If that major pair falls further, it’s all-too likely that AUDJPY will be going with it, with those January lows probably the first to fall.

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

News & Analysis at your fingertips.