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.
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.
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.
Steen Jakobsen,
Chief Investment Officer
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.
Redmond Wong,
Market Strategist
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?
Chris Dembik,
Head of Macroeconomic Research
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?
Peter Garnry,
Head of Equity Strategy
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?
Charu Chanana,
Market Strategist
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?
Hans Oudshoorn,
Trainer Academy
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?
Ole S. Hansen,
Head of Commodity Strategy
In a very challenging macro environment, which currencies do you think will come out on top?
John J. Hardy,
Head of FX Strategy