Technical Update - Correction in USDJPY, AUDJPY and GBPJPY unfolding. EURJPY still holding on. Find key levels here Technical Update - Correction in USDJPY, AUDJPY and GBPJPY unfolding. EURJPY still holding on. Find key levels here Technical Update - Correction in USDJPY, AUDJPY and GBPJPY unfolding. EURJPY still holding on. Find key levels here

Technical Update - Correction in USDJPY, AUDJPY and GBPJPY unfolding. EURJPY still holding on. Find key levels here

Forex 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

USDJPY Despite no RSI divergence a correction seems to be unfolding in USDJPY. A sell-off short-term down to the 0.618 retracement at 154.09 is in the cards.
The 55 daily Moving Average will provide some support around that level.

However, a dip down to 16th May low at 153.60 should not be ruled out!. However, there is downside risk to the 0.786 retracement at 153.11

RSI is still showing positive sentiment supporting higher USDJPY levels, but if USDJPY is closing below 153.60 combined with an RSI close below 40 threshold the trend has turned bearish.

For USDJPY to reverse this corrective behaviour a close above 157.71 is required. If that scenario plays out USDJPY is likely to push higher towards 160

Source all charts and data: Saxo Group

EURJPY dipped below minor support at 169.06 but has since bounced, the uptrend is intact albeit stretched and in exhaustion mode. A bearish correction could still occur.

An other break below 169.06 is likely to push EURJPY lower to the 0.618 retracement at 166.64 and the lower rising trendline.
The 55 daily Moving Average will add to the support strength.

If taking out 170.90 EURJPY uptrend is likely being extended above previous peak at around 171.68.

The RSI divergence is indicating uptrend exhaustion i.e., a bearish correction is most likely. However, if EURJPY is taking out 170.90 and RSI is closing above its upper falling (blue) trendline the bullish trend is to be extended

AUDJPY correction it unfolding after the pair has been rejected just a few pips below the 105 level

Minor support at around 102.80. A break below is likely increasing the selling pressure down to the 0.6518 retracement at 101.83 but a dip down to the 0.786 retracement at 101 should not be ruled out

A break above 104.87 and the uptrend is resuming likely pushing well above previous peak at 105

GBPJPY has been rejected at the previous peak at around 200.75 and a correction is unfolding.

GBPJPY is likely to test the 0.382 retracement at 197.21 shortly but a sell-off down to the 0.618 retracement is in the cards.
The 55 daily Moving Average will add to the support around that level

RSI has been showing divergence for a few weeks indicating that the uptrend has been exhaustion mode.

A daily close above 200.75 will extend the uptrend cancelling/reversing the correction scenario

How to read and understand the Technical Indicators used in this article Technical analysis studies and indicators

Disclaimer

The Saxo 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 Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, 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 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 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 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 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 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.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.