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.


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 is not intended to and does not change or expand on this. 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 (

Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.