News & Analysis
Eightcap Forex technical insights; Japanese Yen on the back foot – 13/03/18
Traders, a shift in sentiment and balance has been brewing since last week. When we started seeing higher low’s setting up on multiple JPY pairs. What looked like very entrenched trends have been breached today after risk currencies and the USD started to break their long-term downtrends. The higher low’s are good signs but we can’t call a trend change until we see a solid test and hold of the break out point or down to the higher low point. Move down to the low can be acceptable but also can show limited buyer strength.
This morning the JPY looked set to send the USDJPY lower into a continuation pattern. This pattern failed in today’s Asian session as buyers moved away from the JPY. The EURJPY, AUDJPY and USDJPY have all broken their downtrend lines tonight. The AUDJPY being the strongest at the moment. The EURJPY busted through hard set resistance in tonight’s London session. If buyers can hold the new imbalance we may be seeing the start of a medium-term trend starting.
Daily price charts.
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