Japanese Yen, USD/JPY, US Dollar, EUR/JPY, Euro – Talking Points
- USD/JPY fell from the clouds final month because it pushed decrease
- EUR/JPY ran decrease however notable assist ranges have held for now
- If the Yen retains strengthening, how low will USD/JPY and EUR/JPY go?
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USD/JPY TECHNICAL ANALYSIS
After breaking beneath the Ichimoku Cloud, USD/JPY bearishness unfolded because it pressed to a 3-month low on Friday at 133.63. That degree may present assist within the close to time period.
Further down there’s a cluster of earlier lows and breakpoints that will present assist at 131.74, 131.50, 131.35, 131.25 and 130.40.
Under there, the 260-day Simple Moving Averages (SMA) is presently at 130.00 and could possibly be a degree to observe.
The transfer decrease on Friday additionally noticed the value go beneath the 200-day SMA. It is now beneath all SMAs lower than 200-days and this may occasionally point out that bearish momentum is presumably evolving.
and a break below it might sign an finish to the bullish run. This could point out a attainable bearish pattern unfolding.
Support could possibly be on the earlier lows of 137.67 and 135.81 or on the breakpoint of 135.57.
Previous assist ranges which have been damaged may now provide breakpoint resistance at 135.81, 137.50 and 136.67.
Further up, resistance could possibly be on the earlier peaks of 139.90 and 142.25.
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EUR/JPY TECHNICAL ANALYSIS
EUR/JPY tumbled to a 2-month low on Friday however was unable to maintain the transfer below a earlier low at 140.90 when it touched 140.77. These ranges may present assist.
That look decrease was additionally unable to penetrate an ascending pattern line and it too could present assist, presently intersecting at 141.00.
The shut on Friday was at 141.53 which was beneath the decrease band of the 21-day Simple Moving Average (SMA) primarily based Bollinger Band at 141.92 on the time. A detailed again contained in the band might sign a pause in bearishness or a possible reversal.
The worth is presently beneath all SMAs 100-days or much less however stays above the 200- and 260-days SMAs. This may point out that brief and medium-term momentum could possibly be bearish however that underlying long term momentum is but to verify this.
Support could lie on the earlier lows of 137.37, 134.95 and 133.40. On the topside, residence is perhaps supplied on the breakpoint of 142.56 or the prior peaks at 146.14, 147.11, 147.72 and 148.40.
Resistance is also supplied on the December 2014 peak of 149.79. Beyond there, a collection of Fibonacci Extension ranges could provide resistance at 150.73, 151.00 and 152.04.
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the feedback part beneath or @DanMcCathyFX on Twitter
