Technical Update - JPY pairs selling off. USDJPY, EURJPY and AUDJPY close to test key supports
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
USDJPY. As mentioned, a couple of days ago USDJPY has broken bearish out of its rising wedge pattern and likely to test support at 134.25. If it breaks below next support is around 131.50. To reverse this short-term bearish outlook USDJPY needs to move back above the lower rising trendline in the wedge.
EURJPY after being rejected at the rising trend line EURJPY is close to testing support at around 136.85. RSI is showing negative sentiment and is close to break back below 40 threshold strongly indicating a break of the support. If that scenario plays out EURJPY is likely to test key support at around 133.
AUDJPY if breaking below 93.85 next support is at the 0.618 retracement at around 93 possibly down to 92.45 i.e. 0.764 retracement. Key support is 91.40
For AUDJPY to resume uptrend a close above 95.60 is needed.
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