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
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.09%, while traders in France 40 are at opposite extremes with 82.60%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/m1lnP4G7B2
  • US President Trump weighing new trade probe to justify levying tariffs on EU, reports Politico $EURUSD
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.02% France 40: -0.02% Wall Street: -0.07% US 500: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/lcyEhCEfsA
  • $USDJPY may be set for a larger pullback on the back of a deteriorating risk environment amid the potential failure in US-China trade talks. Get your market update from @JMcQueenFX here:https://t.co/UOGT5xRX9v https://t.co/JLXsn96FQY
  • Poll: We've had some upgrades in a few growth forecasts from around the world recently and tomorrow brings the Nov PMIs (AUS, JPN, EZ and US). What do you think is the risk of a recession in 2020?
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • staring now -> https://www.dailyfx.com/webinars/3952937094787220994?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/fk3MmFxalj
  • That was a fast reversal in crude oil positioning among retail CFDs yesterday. Not as heavy a build up in short as we pressure 58 https://www.dailyfx.com/sentiment?CHID=9&QPID=917719 https://t.co/m1YFe8PEsM
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.09%, while traders in France 40 are at opposite extremes with 82.08%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/pxnhohjlR2
Japanese Yen In Broad Retreat, US-China Trade Hopes Sap Haven Demand

Japanese Yen In Broad Retreat, US-China Trade Hopes Sap Haven Demand

2019-09-12 02:00:00
David Cottle, Analyst
Share:

Japanese Yen Technical Analysis Talking Points:

  • USD/JPY remains in a solid uptrend
  • Some consolidation may be needed soon, however
  • EUR/JPY bulls seem more cautious but are still in command

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’s countercyclical ‘haven’ position has seen it weaken against the US Dollar since late August. Markets have become more cautiously optimistic on US-China trade truce prospects and also hope for more monetary accommodation from the major central banks.

USD/JPY has now risen consistently since basing on August 25. It has been in a well-respected uptrend channel ever since, gaining for twelve days out of seventeen.

US Dollar Vs Japanese Yen, Daily Chart

The uptrend channel is relatively narrow but nonetheless looks quite secure at present. The pair looks quite secure within it, too, with the lower bound more than a full Yen below the market at 106.80. That point must now be regarded as important near-term support, but there’s another likely prop closer to hand at 107.55. That’s the closing low of August 1, and important point for the bulls as they attempt to claw back the heavy falls seen between July 31 and August 5.

If they can do so by reclaiming the 108.73 region it could be a powerful psychological boost. That is the probable first key resistance. Dollar bulls should be able to get there but they may need a period of consolidation first.

Given the highly correlated nature of markets right now, it shouldn’t be a surprise that many major Yen crosses exhibit similar traits right now, and indeed they do.

EUR/JPY is no exception, but it has perhaps risen a but less vigorously than most, and bounced a bit more recently.

Euro Vs Japanese Yen, Daily Chart

On its daily chart the single currency seems to be trying to edge into a resistance zone marked by the closing top of August 13, a notable recent peak. It hasn’t quite made it there yet but, assuming risk appetite doesn’t get a left-field knock, it seems likely to, probably quite soon. A weekly close above that point would put August 6’s intraday top of 119.72 in play.

Japanese Yen, 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.