Japanese Yen Crosses Send Mixed Signals in Technical Analysis
The Japanese yen's performance against major currencies is sending mixed signals in technical analysis. USD/JPY and GBP/JPY are stabilizing after recent declines, although both face nearby resistance levels.
USD/JPY is showing signs of a potential near-term top, with a bearish engulfing day on Friday suggesting that prices could recoup some of the losses from that day. However, three dojis have formed since then, indicating demand above 156 and around the monthly pivot point.
The 200-day EMA and 50-day EMA are capping prices as resistance for USD/JPY, making it a 'scrappy trade' with no immediate rush to get involved. A break below 155.03 could bring the monthly S1 pivot into focus near the September low.
GBP/JPY, on the other hand, is hinting at a swing low with a bullish outside day formed on Wednesday around the February and September lows. However, the rally has stalled just beneath the weekly pivot point, suggesting a pullback could be due. Bulls may seek dips within yesterday's range while prices hold above 206.85.
AUD/JPY is not hinting at an imminent swing low, with the pair on track for a second consecutive weekly decline and threatening to break the March low. A break of the March low could bring the 108 and 107 handles into focus ahead of the December VPOC.