Technical Update - Strong rebound in USDJPY, EURJPY, AUDJPY & GBPJPY. 2-3% upside potential Technical Update - Strong rebound in USDJPY, EURJPY, AUDJPY & GBPJPY. 2-3% upside potential Technical Update - Strong rebound in USDJPY, EURJPY, AUDJPY & GBPJPY. 2-3% upside potential

Technical Update - Strong rebound in USDJPY, EURJPY, AUDJPY & GBPJPY. 2-3% upside potential

Forex 4 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

  • JPY crosses are bouncing strongly from Fibonacci and/or support levels and rising trendlines
  • Across all JPY crosses the strength indicator RSI is still showing positive sentiment with no divergence supporting higher levels
  • 2-3% higher in the coming days and weeks is in the cards
  • USDJPY could push to 158.46
  • EURJPY to 168.75
  • AUDJPY to 103-104 area
  • GBPJPY to 197-199

USDJPY has rebounded from its 0.786 retracement at 151.75.
The strength indicator RSI is still showing positive sentiment with no divergence. That is a strong suggesting USDJPY is to rebound higher. An RSI close back above 60 threshold will confirm the bullish rebound picture.

A bullish move over the next couple of weeks to the 0.618 retracement at 157.05 is in the cards.
However, according to RSI USDJPY could move to the 0.786 retracement at around 158.46 i.e., at around previous high close.

A break below 151.75 is demolishing the bullish rebound scenario and likely to push USDJPY down to support at around 150.80, possibly down to 149.20.

EURJPY has bounced off the 0.786 retracement at 164.29,  just above the 55 daily Moving Average and just above the lower rising trendline.

A strong rebound is in the cards supported by the strength indicator RSI. RSI is still showing positive sentiment with no divergence: A bullish move over the next few days or weeks to the 0.618 retracement at 168.75 could be seen.

A break below 164.00 will most likely demolish the bullish rebound and send EURJPY down to strong support around 162.30
AUDJPY is rebounding strongly after spiking below the 0.618 retracement to the 100 level last week.

AUDJPY already having bounced to the 0.382 retracement of the correction could ascend further to the 0.618 retracement at 103.05 and even to the 0.786 retracement at 103.90.

A break below 99.90 will most likely reverse the rebound and send AUDJPY down to 99 possibly lower.

GBPJPY closed below the 0.786 retracement last week but found support at the lower rising trendline.

Similar to the other JPY crosses the strength indicator RSI is still showing positive sentiment with no divergence strongly suggesting GBPJPY will rebound higher.

A bullish Engulfing bottom and reversal candle is in the making and if closing above 192.60 it will be confirmed.
A bullish move to the 0.618 retracement at 197.10 would tehn be in the cards. However, a bullish move to the 0.786 retracement at 198.66 is also a possibility.

A break below 191.35 will most likely push GBPJPY down to strong support at around 190.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.