Japanese Yen Technical Analysis: USD/JPY, EUR/JPY, GBP/JPY

Japanese Yen Talking Points:

• USD/JPY is back at resistance following a bullish turn from yesterday’s lows.
• EUR/JPY has pulled back for a test of support at prior resistance but remains overbought on the weekly chart with RSI pushing below 70 on the daily, as of this writing.
• GBP/JPY has held a bounce from the familiar 198.08 level but the pair hasn’t yet shown much success in trending above the 199.24 level, as the 200.00 psychological level lurks overhead.

USD/JPY is back up to resistance following the turn from yesterday’s USD pullback. I think the possible resistance lurking overhead is playing a role as there’s both the 200-day moving average and the 150.00 psychological level just above the current highs. It’s been a strong star to Q3 trade so if bulls can continue the trend that becomes the next significant test to look towards.

Shorter-term, there’s now support potential at prior resistance levels of 148.03-148.13.

USD/JPY Four-Hour Chart

Chart prepared by James Stanley; data derived from Tradingview

USD/JPY Daily

Taking a step back to the daily chart and there are some items that bulls can be excited about, such as the fresh three-month highs that were just set or the continued rally of higher-highs and lows that’s priced-in of late. The challenge now is one of timing as price is rather far from any nearby swing lows and that makes the prospect of chasing, especially so near possible resistance, as a daunting item.

USD/JPY Daily Price Chart

Chart prepared by James Stanley; data derived from Tradingview

EUR/JPY

EUR/JPY has been a high-flyer of late as the pair pushed into overbought territory on both the weekly and daily charts. The weekly overbought reading remains, as of this writing, but the daily chart has seen RSI push back below the 70-level. That does make continuation scenarios more difficult to justify but at this point price action has held higher-low support above the 171.78 level looked at in Monday’s article. If we are to see Yen-weakness drive into the end of the week, this can remain as an attractive venue.

EUR/JPY Four-Hour Chart

Chart prepared by James Stanley; data derived from Tradingview

GBP/JPY

GBP/JPY is back up to a zone of resistance that bulls haven’t had much luck around in the past week. The 199.26 level held the highs last Thursday and since then, there hasn’t been a daily close above it. Like USD/JPY, I think it’s more about what would be next as the 200.00 psychological level lurks overhead and this was less than 20 pips away from coming into play last week, before buyers backed down to allow for a pullback.

GBP/JPY Daily Chart

Chart prepared by James Stanley; data derived from Tradingview

GBP/JPY Shorter-Term

For bullish scenarios, a pullback can open the door for continuation setups. The 199.26 level is of issue as resistance, but below that we have a prior swing high at 198.79 that could be of interest for higher-low support, and below that, 198.40-198.50, which would allow for justification of a higher-low above the swing-low from yesterday.

GBP/JPY Four-Hour Chart

Chart prepared by James Stanley; data derived from Tradingview

--- written by James Stanley, Senior Strategist