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

Japanese Yen Talking Points:

It’s been a strong start to Q3 for USD/JPY, with the pair rallying from a higher-low set on the first day of Q3 trade.
EUR/JPY has jumped above the 170.00 handle and GBP/JPY has come within 20 pips of a test at the 200-level. In the video, I go over strategy for each pair.
I look into all three of these pairs in each weekly webinar, and you’re welcome to join the next one. Click here to register.

USD/JPY has put in a strong push so far in Q3 and while it’s still early, the rally of higher-highs and lows over the past week and change has been rather consistent. I looked into this in the Tuesday webinar and I highlighted a level of note at 145.92, which remains in-play as of this writing. It’s currently helping to hold support, and from a shorter-term basis, continued defense can keep the door open for a push of bullish continuation.

Bigger picture, it’s the 145.00 level that stands out a bit more as this was a big spot of support-turned-resistance in Q2 trade and since the breakout earlier this week, there hasn’t yet been a show of support there after it held as resistance and an initial higher-high last week.

USD/JPY Four-Hour Chart

Chart prepared by James Stanley; data derived from Tradingview

USD/JPY

The daily chart of USD/JPY both accentuates the importance of that 145.00 level while also highlighting the next significant spot of resistance, plotted around the 148.00 handle. That’s ultimately the next major spot for bulls to contend with, if they can keep the recent streak alive; but, for now, that’s a key resistance target for bullish continuation scenarios.

USD/JPY Daily Price Chart

Chart prepared by James Stanley; data derived from Tradingview

EUR/JPY 170.00

EUR/JPY has pushed above the psychological level of 170.00 and notably, this was a spot that bulls could not test above back in 2007 and 2008. Price was finally able to test above the big figure last year, helped along by the Yen-breakdown theme in April; but that was relatively short-lived as prices pushed back down in July and, until last week, hadn’t yet tested above.

That now becomes a major focal point for pullbacks and support tests. Notably, RSI on the daily chart has just crossed below the 70-level.

EUR/JPY Daily Price Chart

Chart prepared by James Stanley; data derived from Tradingview

GBP/JPY

GBP/JPY pulled back to test a trendline last week and as Yen-weakness came back in both USD/JPY and EUR/JPY, GBP/JPY jumped with a fast push towards the psychological level at 200.00. The pair stalled about 20 pips shy of the big figure, and it’s so far pulled back for a support test at a prior spot of resistance at 198.50.

As looked at in the video, there’s deeper support potential at 198.08, after which zones come back in the picture at 197.71-197.82 and then 197.06-197.22.

GBP/JPY Four-Hour Chart

Chart prepared by James Stanley; data derived from Tradingview

--- written by James Stanley, Senior Strategist

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Products and services available depend on your location and the entity holding your account. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Increased leverage increases risk.

GAIN Capital Group LLC (dba FOREX.com) 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. GAIN Capital Group LLC is a wholly-owned subsidiary of StoneX Group Inc.