News & Analysis

Eightcap Forex technical insights; AUD and EUR building support to the Japanese Yen?

May 7, 2018 | Forex News

Looking at some of the Japanese Yen pairs, support looks to be starting to develop. The GBP had very heavy fundamental drivers and is not being considered in a strong position at this point. Our focus is mainly on the AUDJPY and EURJPY on the risk side. These pairs are both starting to show tehnicle signs buyers are trying to shift the imbalance after a very strong week in the red. The EUR lost 174 pips to the JPY and the AUD lost 42, with sellers reaching 95 pips lower during the week. The USDJPY is another finding good interest today trading 8.6 pips higher after fighting back from a 35 pip loss.

Looking at a few pairs in more detail from the daily charts;

The AUDJPY daily is showing several emerging bullish signs. We saw the main lower trend line broken in April, the market pulled back to its current position at 82 with three tests below. These tests failed to close lower reconfirming support seen at the 81.90 high. This is also setting up a larger higher low. With a break of 82.45, we could see a new leg higher. Key resistance remains at the 84.00 level.

Busy Tuesday on the data front for the AUD with Retail Sales and the annual Budget due out tomorrow.

EURJPY daily, like the AUDJPY, broke out of its long-term downtrend in April, the test lower has been deeper for the EUR. Two levels of support have continued to offer interest to buyers. This is also setting up a med-term higher low. On the short-term, we would like to see buyers continue to defend 130.00. Friday’s candle formed a failed low that breached 130.00. A higher close today continues to show buyers are growing in numbers.

New’s wise ECB President Draghi Speaks on Friday. Fed Chair Powell speech on Wednesday.

 

Good trading from Eightcap

 

 

 

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