EUR/JPY, AUD/JPY and GBP/JPY Forecasts – Yen Slipping After CB Meeting

EUR/JPY Technical Analysis

The Euro has rallied a bit during the early part of the trading session here on Monday against the Japanese yen, but it is struggling a little bit with 187 Yen. Nonetheless, I think the real fight is above at 188 Yen. Breaking above that allows the Euro to truly take off to the upside, perhaps even getting to the 190 Yen level as the next large round, psychologically significant level, and the measured move of the last couple of weeks. A breakdown from here could see the Euro testing 185 Yen.

AUD/JPY Technical Analysis

The Australian dollar has broken to a fresh new high against the Japanese yen during the early part of Monday, and this is one of my favorite yen-denominated pairs, as the Australian dollar has been so healthy, and the carry is pretty strong with this one. You get paid fairly well at the end of every day. I think short-term pullbacks offer buying opportunities. I don’t see why this thing doesn’t go to the 116 Yen level unless we get some type of massive shock to the system, which could happen in the Middle East. It doesn’t seem to be going that great, but as things stand right now, I like buying and holding this. I think the Aussie has some distance to cover against the Japanese yen soon.

GBP/JPY Technical Analysis

The British pound is on the verge of breaking out as well. Nice little double top pattern; if we can break through it, then I think the British pound could go looking to the 218 Yen level with support at 215 Yen. The swap is fairly strong here, so that helps as well. I like the idea of owning this pair; I have no interest whatsoever in shorting it and I’ll just collect the swap as we grind higher. That’s the plan, at least.

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