Technical Update - USDJPY broken bullish, eyeing 149. EURJPY, AUDJPY and GBPJPY range bound Technical Update - USDJPY broken bullish, eyeing 149. EURJPY, AUDJPY and GBPJPY range bound Technical Update - USDJPY broken bullish, eyeing 149. EURJPY, AUDJPY and GBPJPY range bound

Technical Update - USDJPY broken bullish, eyeing 149. EURJPY, AUDJPY and GBPJPY range bound

Forex Options 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  USDJPY broken higher extending uptrend. Could move to 149 level.
EURJPY, AUDJPY and GBPJPY still range bound. Break out needed for direction


USDJPY broke the resistance at around 146.55 to close higher above last week’s spike.
Uptrend is resumed and could extend to 1.382 projection at 148.50 possibly up to the 1.618 projection at 149.18.
However, RSI is currently showing divergence and needs to close above the horizontal dashed line to cancel that. If it does there could even more upside for USDJPY.

A close below 144.50 will reverse the bullish picture

Medium-term (weekly chart) USDJPY is in an uptrend and if closing a week above the 0.786 retracement at 146.60 is likely to continue higher towards previous peak at around 151.94
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. EURJPY seems to be caught range bound between 156.85 and 159.75. Break out needed for direction.
RSI divergence is indicating break out to be to the downside which could lead to a correction down to around 155.57 support

However, a break higher is likely to lead to the uptrend to be extended to 162.15. An RSI close above its falling (blue) trendline would support that scenario

AUDJPY is 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 bear spike from 28th July could be key. If it is taken out there is downside potential to around 90

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

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