Important JPY Pairs’ Technical Outlook: 25.01.2017

USD/JPY

Even as 112.50-55 again played an important role in restricting USDJPY’s decline, the pair couldn’t surpass 113.90 and is currently witnessing pullbacks in direction of 113.10, breaking which it can re-post 112.55-50 on the chart. Given the pair drops further below 112.50, the 112.20 & 111.80 are likely intermediate halts that it might avail prior to re-testing 111.35-30. On the contrary, a break of 113.90 can quickly propel the quote to 114.50 and then to the short-term descending trend-line resistance, around 114.70. Should there be additional strength on the part of the pair which enables it to break 114.70, it becomes capable enough to challenge 115.20 & 115.45-50 horizontal-line resistance.

EUR/JPY

Ever since the EURJPY dropped below 122.20-25 horizontal-line during early-weekdays, it repeatedly tried to break the same but failed. However, the pair’s recent reversal from 121.60 again pulls it towards the aforementioned area, which if broken can quickly trigger its up-move to a downward slanting TL, stretched since start of the month, at 122.70. If Bulls manage to propel prices beyond 122.70, it becomes wise to expect 123.00 and the 123.20 for the quote. In case of the pair’s another reversal from 122.25, the 121.90 can serve as an immediate support before flashing 121.60-55 on the chart. Should there be additional weakness by the pair below 121.55, the 121.20-15 horizontal-line becomes crucial to watch for traders, which if not respected, opens the door for the pair’s downward trajectory towards 120.80 & the 120.50 support-levels.

GBP/JPY

Unlike USDJPY & EURJPY, the GBPJPY already surpassed 142.15-40 broad resistance-region and seems heading towards 143.30, breaking which 61.8% Fibonacci Retracement level of 143.85 and the 144.10 can become consecutive resistances. During the pair’s successful advances beyond 144.10, the 145.00 round figure comes into traders’ radar ahead of flashing lights on 145.50 & 146.25-30. Meanwhile, pair’s inability to sustain latest breakout might again drag it to 142.40-15 area, clearing which a downward slanting resistance-turned-support-line, at 141.20, can offer rest to the quote before extending the dip to 140.70. If prices continue declining below 140.70, the 140.00 and the 139.10 may give a smile on sellers’ faces.

CAD/JPY

CADJPY’s latest break of short-term descending trend-channel seem aptly confined by 86.60 but the pair’s required dip below 86.30 is absent and hence 86.30-60 can keep entertaining traders ahead of today’s Crude inventory which might trigger some noticeable CAD moves. Should the EIA stockpile figure matches its API counterpart, chances of the pair’s dip below 86.30 are higher, which in-turn can quickly fetch the quote to 50% Fibonacci Retracement level of 85.80 and then to 85.50. However, pair’s additional downside below 85.50 could find it hard to break 85.00, around 61.8% Fibo, which if broken can fetch prices to 84.30. Alternatively, an upbeat inventory figures and a rise to CAD would trigger the pair’s break of 86.60, making 87.00 as imminent resistance to watch. Given the pair manage to sustain its strength beyond 87.00, the 23.6% Fibo level of 87.40 and the 87.80-85 can become Bulls’ favorite before aiming for 88.00 round figure.

Cheers and Safe Trading,
Anil Panchal