Important JPY Pairs’ Technical Overview: 09.03.2017

USD/JPY

Following its repeated failures to surpass seven-week old descending trend-line, at 114.40 now, the USDJPY finally managed to break the same on Thursday, indicating brighter chances of its advances to 115.00 and 115.60-70 nearby resistances. With the Friday’s NFP likely to post another set of good number, the pair might extend its up-move beyond 115.70 and the can aim for 116.30 and the 117.00 figures towards north. However, pair’s pullback below 114.40 can negate the importance of recent breakout by fetching it to 113.80 and 113.50 support-marks before reigniting concerns for 113.00 and the 112.55-60 test. Given the pair continue declining below 112.55, the 111.90 & 111.60 are likely buffers that it has to conquer prior to pleasing sellers with 61.8% FE level of 110.65.

EUR/JPY

EURJPY’s bounce from 118.40-50 horizontal-support triggered the pair’s rally which currently helps it confront the 50-day SMA figure of 121.20. Should the quote provide daily closing above 121.20, it becomes capable enough to aim for 121.60 & 122.20 while nearly three-month old descending trend-line, at 122.60, might restrict its following up-moves. In case of the pair’s successful break of 122.60, chances of witnessing 123.30 on the chart can’t be denied. Alternatively, pair’s closing below 121.20 can again drag it to 120.30 and the 120.00 nearby supports, breaking which 119.50 & 119.10 may entertain short-term sellers; though, 118.50-40 could limit the pair’s further south-run below 119.10. If at all the pair drops below 118.40, it becomes vulnerable to visit 117.55 and 116.35 support-numbers.

GBP/JPY

Even if 138.35-40 horizontal-line triggered the GBPJPY’s U-turn during Wednesday, the pair can’t be termed strong unless breaking 50-day SMA figure of 141.30 with near-term descending trend-line, at 140.60, offering immediate resistance. If the pair provides a daily closing above 141.30, it can quickly rise to 142.80 & 143.50 before aiming the 144.40. Meanwhile, 139.00 seems to be adjacent support for the pair traders to watch, breaking which 138.40-35 again comes into play. Given the pair breaks 138.35, it can drop to 137.50 & 136.80 while 136.30 and 135.80 become important during its following downside below 136.80.

CAD/JPY

For CADJPY traders, 100-day SMA figure of 84.60 becomes an immediate concern and with the comparative weakness of CAD, the pair is more likely to decline towards 84.30 & 84.00 after clearing the SMA support. Though, lower-line of three-month old descending trend-channel, at 83.90, might trigger the pair’s pullback moves, failing to which makes it weaker enough to test 83.20 & 82.80 supports. Alternatively, 85.00 and 85.30 are likely nearby resistances to be observed, surpassing which 85.60 & 86.00 may come back on the chart. During the pair’s additional advances beyond 86.00, 50-day SMA figure of 86.40 and the channel resistance of 87.50 gain lime-light.

Cheers and Safe Trading,
Anil Panchal