Trends breaking to the Yen?
Yen strength has been a key so far in today’s session.
Global COVID-19 anxiety has been a factor in today’s USD and JPY rally. So far today we have seen the Japanese Yen continue to gain momentum. All of the majors so far have been moving lower to the safe-haven.
Today we’re focusing on the EURJPY and EURJPY daily charts as to this point they have shown the most trend structure weakness.
EURJPY D1 – price continued to struggle to break out this week and sellers are finally winning overnight with a failed high and reversal. This is a short term change in momentum which could become something more if sellers can hold their new gains. Today price continued lower, but we see some points of support below. For now, we would like to see sellers hold momentum and if we see support found below we would like to see a new lower high and support break to show this could be a new medium-term trend.
USDJPY D1 – the pattern of price is a little different from the E/J, we have range pattern with the new weakness lining up around the middle of the range. We have a new downtrend after two LHs where confirmed. Price has broken the minor uptrend with further confirmation coming in today’s session. While sellers hold momentum we are looking for a possible test of the range bottom. Looking further ahead if that happens it’s up to sellers to break the range to get a new trend underway.