Japanese Yen Technical Analysis: USD/JPY, EUR/JPY, GBP/JPY. In this video, James Stanley discusses:
USD/JPY has been range-bound for more than a month now following the NFP-fueled snap back in early August. Given the general weakness in the USD, with DXY setting yet another fresh monthly low today, the fact that USD/JPY has held support illustrates Yen-weakness. If we do see a paring back of US rate cut expectations, there could develop motive for USD/JPY strength. But, at this stage, the Fed is expected to cut another two times this year and then possibly another three next year even with headline CPI expected to bump up to 2.9% in Thursday’s release.
EUR/JPY is back to testing the highs and there could be a more attractive claim for Yen-weakness continuation here. There’s now support potential in the pair around the 173 handle, followed by a key level at 172.55 and that can also be seen as a form of short-term bullish invalidation.
GBP/JPY is back to the 200.00 handle and as looked at in the video, the pair is vying for topside breakout despite resistance continuing to hold at the big figure. The pair was 2.5 pips away from a test in July and in August, bulls were able to push up to a fresh yearly high although they couldn’t drive much strength beyond the 200.00 price. This week has seen the print of a fresh high and going along with the recent higher-lows, there could be an opening door for bullish breakout potential in the pair.
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