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Technical analysis of USD/JPY
USD/JPY rose last week to its highest since November 2022, but Ueda’s attempts to dispel channel resistance failed, suggesting the monetary authority may be in a better position to exit. The decline coincided with the governor’s comments. Negative interest rates will be lifted by the end of the year.
The yen initially reacted positively to these developments, but its strength did not last long. The daily chart below shows that USD/JPY has rapidly regained its upward trajectory since early 2023, with the bulls still controlling the market and triggering a bullish breakout soon. This is a clear sign that you may find .
Looking ahead to the next potential leg, the first resistance lies near the psychological 148.00 level. However, crossing this technical barrier could lure new buyers into the market and create the right conditions for an acceleration towards 148.80 and then 150.00, the upper bound of the ascending channel since early March. There is sex. If it continues to strengthen, it could head towards 152.00.
In case of a pullback and subsequent weakness, technical support lies at 145.90 and then at 144.55. It is conceivable that the price could establish a base for this range during a pullback, but in case of a breakdown, such a move could open the door to a retracement to 143.85 before a slide to 141.75. So all bets are off.
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USD/JPY technical chart
USD/JPY chart created using TradingView
GBP/JPY technical analysis
From late July to August, GBP/JPY began a strong upward trend. However, this upward momentum faded with a failed attempt to break through the overhead resistance in the 186.75 area, and prices have fallen since its rejection, guided by a short-term dynamic trend line. As of this update, the pair sits above the major floors from 183.60 to 183.10.
Failure to hold the 183.60/183.10 technical support range could intensify the selling momentum and set the stage for a fall towards the psychological mark of 180.00. This region could act as an initial shield against further decline, but a breakout could put the 176.35 level in sight. Further weakness could allow sellers to move to 174.73, the 38.2% Fib retracement of the 2023 rally.
Alternatively, if the buyers reasserted their influence and decisively pushed the price higher, trendline resistance would be located at 185.35. A successful break above this ceiling could strengthen the upward momentum and allow the bulls to push towards the 2023 high.
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|
change |
long |
shorts |
OI |
| every day | -Ten% | 6% | 1% |
| weekly | -6% | 1% | -1% |
