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Technical Update - USDJPY, EURJPY & GBPJPY Technical Update - USDJPY, EURJPY & GBPJPY Technical Update - USDJPY, EURJPY & GBPJPY

Technical Update - USDJPY, EURJPY & GBPJPY

Forex 3 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  JPY pairs rebounding. Could cancel the potential bearish scenarios. USDJPY and EURJPY were forming Shoulder-Head-Shoulder like patterns but buyers seem to have a different opinion. Previous peaks could be tested
USDJPY could move higher to re-test key strong resistance at 137.85
EURJPY testing rising trendline
GBPJPY bouncing from key support

USDJPY doesn’t seem to be in the mood to unfold its potential Shoulder-Head Shoulder pattern. The strong bounce Friday from the possible Neckline has the potential to push USDJPY back to test previous peak and key strong resistance at around 137.85.

Positive RSI sentiment and no divergence supports the bullish USDJPY scenario especially if RSI closes back above 60 threshold.

I have kept the SHS indications on the chart. If USDJPY drops back to close below 133.74 the SHS could still unfold. However, it would a quite unusual SHS pattern with right should much higher than left one. Usually, they will be almost the same height which suggests the SHS pattern are not very likely to unfold. 

Source all data and charts: Saxo Group

EURJPY is testing its rising trendline which could be the Neckline in a SHS pattern. However, if EURJPY closes back above the Neckline/rising trendline the SHS pattern is busted and EURJPY is likely to move higher.

Positive RSI sentiment and no divergence support the bullish outlook for EURJPY.

If EURJPY closes back above the rising trend line the pair will have the potential to reach previous May peak around 151.60.
If EURJPY is rejected at the rising trendline (Neckline) the SHS pattern could still unfold with potential down to 144.65-144.

GBPJPY broke bearish out of it rising channel like formation only to bounce at support at around 167.97. If GBPJPY closes back above the lower rising trendline expect a move to re-test strong resistnace at around 172.14.

Positive RSI sentiment and no divergence supports this bullish scenario. For GBPJPY to confirm a down trend/larger correction, a close below 167.97 is needed.


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