JPY lower on rising bond yields, overnight miss on CPI JPY lower on rising bond yields, overnight miss on CPI JPY lower on rising bond yields, overnight miss on CPI

Technical Update - JPY pairs range bound. Break out could be imminent

Forex 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  USDJPY, EURJPY, AUDJPY and GBPJPY
Across the board JPY pairs have been range bound for the past two weeks. US job report to be released today could push the pairs out of their range


USDJPY seems stuck in a tight range between 144.50 and 146.55. IT has tried to break oput to the upside a couple of times but failed to close above.

A close below 144.50 could lead to a larger correction down to the 0.618 retracement and support at around 141.55
RSI is showing positive sentiment  but with divergence indicating break out to b4e to the down side.

However, if USDJPY is breaking out to the upside to close above 146.55 a move to 147.80-148.58 is in the cards
usdjpy d 0109
Source all charts and data: Saxo Group

EURJPY did close higher 30th August meaning it is still in an uptrend but haven’t been able to follow through.
RSI divergence is indicating break out to be to the downside which could lead to a correction down to around 155.57 support

A break higher is likely to lead to the uptrend to be extended to 162.15. An RSI close above its falling trendline would support that scenario
eurjpy d 0109

AUDJPY seems to be trading in a more and more narrow range. Last few weeks between 92.80 and 95.00. Break out needed for direction.
Break out to the upper side there is resistance at around 95.85. Bullish RSI with no divergence is indication that is the likely scenario. If breaking out to the upper side the resistance at around 95.85 is likely to be taken out.
However, a break out will most likely not be with out a struggle. The declining 55 daily Moving Average is acting as a resistance.  

If breaking below 92.80 a swift sell-off down the 200 daily Moving Average should be expected. The trough spike from 28th July could be key. If it is taken out there is downside potential to around 90
audjpy d 0109

GBPJPY range bound between 183.35 and 186.65.

Bearish break out is could fuel a sell-off down to 0.618 retracement and support at around 180.20
A break above 186.65 uptrend set to be extended to strong resistance at around 188.80.

RSI divergence is indicating break out to the downside but if RSI is closing back above 60 followed by a close above the falling trendline higher GBPJPY levels should be expected
gbpjpy d 0109

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