News & Analysis

Eightcap Forex technical insights JPY – 15/02/18

Feb 15, 2018 | Forex News

What a two weeks it’s been for the Japanese Yen, we’ve seen some very strong gains to the majors. The USD has taken it especially hard with a drop back into the 106 handle. The USDJPY has lost 350 pips in the last two weeks and 539 pips in the last two months. Other majors are also seeing solid red this month. The AUD down 330 pips. The BoJ committed to further stimulus as required this week to ensure 2% inflation target will be reached. December’s 2017 figure coming in at 1.10 %. This weeks BoJ comment sent the JPY flying higher. Yesterday’s session saw some wild moves on the JPY pairs. What’s got me thinking is the fact that we saw failed low’s come in on the AUD and EUR. JPY pairs are dangerous to pick bottoms or tops on due to the ranges they can make while sorting themselves out at levels, but signs are starting to present that a shift in balance maybe starting to build.

AUDJPY – we’ve seen four failed attempts that have formed a support point that lines up with a previous low at 84.35. This could be a demand zone if buyers can hold. A close below 84.20 really starts to say sellers are looking to take this market lower.

EURJPY – five moves below 133.00 have been stopped so far by buyers, today sellers are making another test below. Below 132.00 has also come in as a low point for buyers stopping two attempts by sellers. This continues to act as a demand zone. As with the AUD where looking for these levels to continue to hold and potentially set up a leg higher. A close below 132.50 puts a lot of pressure on this area and suggests sellers are far from down and out!

Good trading from Eightcap


* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.