Daily analysis

Japanese Yen Technical Analysis: AUD/JPY, CAD/JPY, GBP/JPY Key Levels

The Japanese Yen has clawed back lost ground against its major counterparts in recent days and looks set to continue pushing higher against the British Pound. However, the higher-beta Australian and Canadian Dollars may outperform the haven-associated JPY, as both currency pairs hover above key support levels.

AUD/JPY DAILY CHART – PERCHED ATOP KEY SUPPORT


AUD/JPY rates appear to be gearing up for an extended topside push, as prices remain constructively perched above the November 13 low (75.76) and all four moving averages.

With the MACD indicator and RSI both tracking firmly above their respective neutral midpoints, the path of least resistance seems to favour the upside.

Extending upwards from here brings resistance at the monthly high (77.09) into focus, with a daily close above needed to open the door to probe the yearly high (78.46).

Alternatively, a daily close below the 21-DMA (75.56) would probably neutralize near-term buying pressure and generate a pullback towards mobile support at the 100-DMA (75.05).


CAD/JPY DAILY CHART – ASCENDING TRIANGLE IN PLAY


The technical outlook for CAD/JPY rates remains skewed to the topside, as prices continue to carve out a bullish Ascending Triangle pattern.

However, with price tracking below all four moving averages and a bearish crossover taking place on the MACD indicator, further losses look likely in the near term.

Breaking below the November 17 low (79.39) would probably generate a pullback towards confluent support at the 78.6% Fibonacci (78.47) and triangle uptrend.

On the other hand, climbing back above range resistance at 79.60 – 79.70 could signal uptrend resumption and bring the August high (81.58) into buyers’ cross hairs.

GBP/JPY DAILY CHART – CARVING OUT TOPPING PATTERN


GBP/JPY rates could be poised to slide significantly lower as prices carve out a Head and Shoulder topping pattern.

The swift reversal lower after testing the June high (139.74) propelled price back towards key support at the August low (137.75) and seems to have carved out the pattern’s right shoulder.

Extending downward from here puts the spotlight on the sentiment-defining 200-DMA (136.74), with a breach probably carving a path towards the Head and Shoulders’ neckline and October 2 low (135.05).

Contrarily, upside continuation that cements a foothold above the 140 level would likely open a path to probe the September high (142.71).


Reference by: Daniel Moss, Analyst for DailyFX

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