Technical Update - Bullish trends in JPY pairs are getting more and more ripe for corrections. USDJPY, EURJPY, GBPJPY & AUDJPY Technical Update - Bullish trends in JPY pairs are getting more and more ripe for corrections. USDJPY, EURJPY, GBPJPY & AUDJPY Technical Update - Bullish trends in JPY pairs are getting more and more ripe for corrections. USDJPY, EURJPY, GBPJPY & AUDJPY

Technical Update - Bullish trends in JPY pairs are getting more and more ripe for corrections. USDJPY, EURJPY, GBPJPY & AUDJPY

Forex 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Uptrends in JPY pairs are quite stretched and are ripe for corrections. Corrections that are likely to be limited however, with the medium-term trends pointing to higher levels
USDJPY key resistance at 145.30. Keep an eye on rising trendline
EURJPY rejected at 158. RSI divergence warning about a correction
GBPJPY. RSI divergence warning about a correction but buyers keep pushing GBPJPY higher. For how long?
AUDJPY correction seems to be unfolding. Key support at 95.15


USDJPY a correction seems increasingly likely to unfold, short-term. However, resistance at around 145.30 could be tested before a correction is unfolding. A close above 145.30 could result in the uptrend extending to 146.60 before a correction which is the 0.786 retracement – see weekly chart.

If USDJPY breaks below lower rising trendline, key support at 142.25. A close below 142.25 could lead to a larger correction/sell-off down to 139.18 (0.382 retracement) but could dip down to strong support at around 138.80

Weekly chart suggests this is merely just going to be a correction and not a trend change. Weekly RSI is positive without divergence indicating likely new higher USDJPY levels and no strong resistance . A move to the 0.786 retracement at 146.60 should be seen.
However, medium- to longer term 2022 peak just below 152 could be challenged

Source all charts and data: Saxo Group

EURJPY seems to be rejected at 158 and is about to unfold a correction. RSI divergence indicates a weakening of the uptrend short-term further adding to the correction scenario.

A correction down to support at around 154.40 could be seen but a dip down to the lower rising trendline should be expected.
If EURJPY closes below 154.40 a sell-off down to 0.618 retracement at 152.20 could be seen.

For EURJPY to extend the uptrend a closed above 158 is needed supported by RSI closing above its falling trendline

Medium- to longer term EURJPY is in an uptrend with no strong resistance until 169-170.
Weekly RSI showing no divergence supporting higher EURJPY levels. That uptrend will. However be in jeopardy if EURJPY drops to close below strong support at around 150.75

GBPJPY. RSI divergence is warning of a correction. A correction down to test lower rising trendline. If closing below it could drop to strong support at around 174.20.

Short-term support at 179.90 is key. A close below would confirm correction is unfolding.
However, a top and reversal indicator is not yet in place and GBPJPY could continue higher before a correction occurs. A daily close above 184.00 is likely to extend the uptrend short-term before a correction.

The medium-term uptrend is strong without RSI divergence suggesting a correction is likely to be limited. There is room up to resistance at around 188-189.

AUDJPY correction is unfolding and can slide down to the 0.382 retracement at around 93.23. The correction scenario is confirmed if AUDJPY is closing below 95.15. A correction could then be seen down to the lower rising trendline and support at around 93.20

However, with no daily RSI divergence uptrend is likely to resume and AUDJPY could have another go at the strong resistnace at around 97.50.
A close above 97.70 could lead to the medium-term uptrend to be extended to 103-104 resistance area (back from 2013 and 2008)

To reverse the uptrend a close below 172.50 is needed.

Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.