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Yen strength has returned, triggering reversal signals in USD/JPY and pressure across GBP/JPY and EUR/JPY. The setup is there, but timing around Japan’s fiscal year-end complicates the read.
Bearish reversal signals warned momentum may be vulnerable, yet bulls stepped back in across the yen crosses. Whether that resilience holds may soon be tested.
Bearish reversal signals in EUR/JPY and GBP/JPY have put bullish trends on notice. With both pairs testing support, traders may not have to wait long for confirmation.
UK assets are in focus, but for all the wrong reasons as calls for Keir Starmer to resign grows louder. So far, though, the GBP/USD has held its own rather well and the FTSE 100 has remained near record levels. Perhaps that’s only because of the ongoing risk rally across global markets, where stock indices are finding renewed support and the dollar coming under pressure. When you look at some of the pound crosses, that’s where you see the relative weakness.
JPY pairs show mixed signals after the BOJ meeting, with USD/JPY stuck in range, AUD/JPY eyeing retracement, and GBP/JPY rejecting 200.
The British pound tests key levels across majors. GBP/USD eyes 1.36, GBP/JPY consolidates above 200, GBP/CAD stalls at resistance, and GBP/AUD stays under pressure.
USD/JPY has been in a somewhat consistent range for more than a month now, even as USD-weakness has shown in many other FX markets. But EUR/JPY and GBP/JPY may still have a more compelling case for JPY trends.
USD/JPY has been very range bound since the early-August pullback but given the fresh lows in DXY, that says quite a bit about Yen-weakness. EUR/JPY and GBP/JPY are both trading around recent highs and retain breakout potential.
Traders add to Japanese yen longs, pressuring USD/JPY lower, while GBP/JPY and EUR/JPY show bullish continuation signals.
The British pound forecast remains modestly bullish following that hawkish Bank of England rate cut last week, especially against currencies where the central bank is deemed to be a bit more dovish than the UK central bank.
USD/JPY reversed a breakout around the NFP report, but more recently buyers have been digging their heels in at support.
It was a big week for the British Pound even with the Thursday rate cut from the Bank of England. For next week, the focus is on US CPI and whether USD bears can continue to push.
Japanese Yen weakness has returned against the Euro and the British Pound and the question now is whether USD/JPY can join in.
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