Yen Pairs Outlook

Hello everyone!

After the tremendous bearish moves on the Yen pairs that we’ve seen (as expected), we’re currently looking at some loss of momentum. Despite that, I believe it’s just a temporary move as it’s still too early to call for a reversal pattern in formation because it surely won’t come overnight, considering the amount of pips moved since the beginning of the year and we know that these kind of reversals take their time (remember the old man easing into an hot bath).

Fundamentally, it is important to note that we have BoJ meeting on Friday and last week we had Kuroda talk about the exit of the enormous monetary stimulus, by April 2019. This was big news for the Yen pairs, as we watched them decline further on hopes of inflation reaching 2% by that time.

Regarding seasonality we are still expecting for the Yen pairs to come down further, maybe until the end of March or the beginning of April, so we may have another 3 more weeks of yen strength to take advantage of.

Let’s look at the Technicals (for the purpose of this post, I’ll only use Daily Charts as I’m not looking for a specific entry on a shorter timeframe, but rather just to analyze the “bigger picture):

(It’s the first time I do this sort of posts, so I would tremendously appreciate your feedback).

AUD/JPY - Daily

Price bounced at a key level of support, previously identified and it’s heading to the next level of resistance between 84.10 and 84.40.

GBP/JPY - Daily

The “beast” is currently at a big level of support and it has 2 possible levels of resistance: 148.86 (WR1) or 150.39 (WM4. The latter would a “stretch” but it’s still important to mention considering previous key levels of support and resistance at this level.

CAD/JPY - Daily

CAD is incredibly dismal with trade uncertainty looming on the currency. Next big level of resistance is sitting at close to 84.

EUR/JPY - Daily

Price is at a strong resistance on WR1. Bears will want price to come down and the ECB meeting tomorrow might help doing so.

NZD/JPY - Daily

Price bounced at a key level of support, previously identified and it’s heading to the next level of resistance at WR1 (77.80)

USD/JPY - Daily

Price made a double bottom, of sorts, on the big support level of 105.46 and it’s now heading to the next level of resistance at around 107.80. This could lead to a double top anticipating one last big move on the pair before April.

3 thoughts on “Yen Pairs Outlook”

  1. im waiting for audjpy to make double bottom on Daily chart

    1. João André says:

      Yes, I can see that.

      However, I’d like to see price go up a little further to the highlighted resistance before making the drop and the double bottom. I want it to double bottom later in order to reinforce the start of a reversal pattern by late March.

      1. Yes bears will enter highlighted resistance

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