Yahoo Finance Yen Gets Ready For Another Upswing
Yesterday we looked closer on the situation on the Swiss Franc and today, we will analyze Japanese Yen. First, the JPY Index, which is showing first signs of a bullish sentiment. We do have two major positive signs at the moment. First one is the defense of the horizontal support around the 23,6% Fibonacci and second one is the breakout of the mid-term down trendline, connecting lower highs since the beginning of February. Buyers have just one obstacle left – 38,2% Fibonacci. Once the price will close a day above that one, buy signal will be triggered.
Now, AUDJPY, which we analyzed few days ago. We were bearish and the pair did not disappoint us at all. After bigger flag, the price created a smaller wedge and yesterday broke its lower line. With that, the current sentiment is negative.
Last one is the USDJPY, where the price is trying to create a head and shoulders pattern. On this pair, we do not have a huge slide right now, as both currencies are strong. Recent appetite for Dollar is significant too. Potential for a drop is here though. As You can see, very similar pattern was already present here in January and resulted in a nice drop. Sellers can potentially count here on around 100 pips but first, we should see the breakout of the neckline. As long as we stay above the blue line, buyers can still be optimistic.
This article was originally posted on FX Empire
