GBP/JPY, AUD/JPY and CAD/JPY Forecast – Yen Gives Back Initial Gains on Wednesday

GBP/JPY Technical Analysis

The British pound initially fell against the Japanese yen during trading here on Wednesday, breaking below the 210-yen level, but it now looks as if it is fighting back. Because of this, I think we’ve got a real shot at this market turning around and running to the 214-yen level.

The 50-day EMA is in this neighborhood as well, so that bodes well also, and at the same time, the British pound has been fairly stable and strong against multiple currencies, so it all adds up quite nicely.

AUD/JPY Technical Analysis

The Australian dollar has been choppy against the Japanese yen as we are hanging around the 109-yen level, but this is a market that I think will continue to rally over the longer term. I currently see the 108-yen level as a short-term floor in the market. If we can stay above there, then we should see good things occur, but right now, I would anticipate a little bit of flattening out and then eventually a pop higher.

CAD/JPY Technical Analysis

The Canadian dollar is a little bit different than some of the other currencies in the sense that it tested the 50-day EMA and it fell, but it hasn’t bounced quite as much.

This does make a certain amount of sense because there is a lot of chaos in the oil market right now, and, of course, if oil starts to fall, this pair typically will, mainly due to the fact that Canada exports oil and Japan imports 100% of its oil.

Look to the area right around 111.5 and 112 as significant support. While I wouldn’t necessarily short this pair, it’s probably going to have a harder time rising against the yen than, say, the pound or the Australian dollar.

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