USDJPY:
The JPY is unquestionably in the midst of a very strong run against the USD as inferred from the tight channel this pair has been trading in. However, yesterday’s price action does represent the first breach of trend line Support. In contrast to that, though, and despite the intervention by the Bank of Japan, the JPY was not able to break above the 50 day moving average, rather it bounced off that level. A break above the 50 MA would help to solidify this move higher while a retracing candle(s) would leave observers wondering who the bigger player in Forex is, the BOJ or the Market itself.
EURJPY:
Once again the JPY has been trending nicely against the EUR as implied by the nice support and resistance trend lines. However, yesterday’s price action took out JPY support as it moved out of the trend lines. On the way higher the 50 day moving average which also coincided with near term resistance at 111.75 was also cleanly taken out. Interestingly enough price action essentially bounced off of the 100 day moving average. A subsequent close above the 100 MA may imply this move is for real while a bounce lower suggests a return towards the macro trend.
GBPJPY:
Probably the least impressive of the 3 major JPY crosses was the price action technicals on this pair. With the exception of the breach of the 50 day moving average, which has been crossed a number of times during this JPY run there was no other major technical impact. Mid term Resistance just above 1.35 remains intact as does trend line resistance. Additionally, yesterday’s price action stopped short of taking out the 100 day MA. Although a breach of the 100 day MA would be significant, analysts would like to see price take out the 200 MA before shifting towards a GBP bullish bias.
Written by bforex.com
