Japanese Yen Technical Evaluation Speaking Factors:
USD/JPY’s 2019 uptrend exhibits little signal of breaking to both facet
Extra rises nonetheless appear to be the probably course
GBP/JPY has gained sharply however now appears to be like over-extended
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The Japanese Yen stays broadly on the defensive in opposition to the US Greenback and appears more likely to stay so for so long as elementary danger urge for food holds up.
USD/JPY stays throughout the well-respected daily-chart uptrend which has held sway since January 10 and which is itself a continuation of the longer stand up from the current important low, which was printed on January 2.
Whereas a channel break both method doesn’t look instantly doubtless, the pair is clearly a lot nearer towards the channel high than it’s to the bottom and, throughout the channel has simply managed to print a higher-high. Monday’s shut this week put USD/JPY above February 13’s high of 113.07, which was additionally the final time the channel high was tried and rejected.
Admittedly the pair as seen some sharp down days, when danger urge for food has diminished however till a break is confirmed there appears little higher short-term choice than persevering with to play the channel. It now provides resistance at 111.59 a degree which might look like too far above the marketplace for an instantaneous take a look at except every day ranges begin to widen as soon as extra.
Rapid help appears to be like to be round 110.33, the place the 23.6% Fibonacci retracement of this yr’s rise kicks in.
Bulls of the British Pound are doing nicely in opposition to the Japanese Yen, in the meantime, as they’re in opposition to most different currencies as markets speculate a few delay to Brexit, or the diminishing probability of a harmful ‘no deal’ walkout for the UK.
Regardless of the deserves of those prognoses, GBP/JPY is now again as much as highs not seen since late final yr, with a strong uptrend in place from the lows of January, 2019. That mentioned the Pound now appears to be like unsurprisingly overbought and possibly prepared for a bit of consolidation.
Ought to that happen and take the cross no decrease than the earlier important peak then Sterling bulls will most likely stay within the driving seat total. That peak was 144.54 and it was printed intraday on January 25
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— Written by David Cottle, DailyFX Analysis
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