News & Analysis
Eightcap Forex technical insights JPY – 15/02/18
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
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