Japanese Yen Technical Analysis: AUD/JPY, GBP/JPY, USD/JPY Key Levels

By Daniel Moss7 days ago

Japanese Yen, AUD/JPY, GBP/JPY, USD/JPY, Cycle Analysis – Talking Points:

  • Cycle analysis suggests the Japanese Yen may be at risk of extended losses against its major counterparts in the coming months.
  • Ascending Triangle hints at gains for AUD/JPY rates.
  • Ascending Channel pattern guiding GBP/JPY rates higher.
  • Key support at 109.00 holding firm for USD/JPY.

The Japanese Yen has faced significant headwinds in recent weeks, as climbing sovereign bond yields put the carry-trade back in vogue. This dynamic looks set to endure over the near-term and may open the door to further losses for JPY. Here are the key levels for AUD/JPY, GBP/JPY and USD/JPY rates.

Majors-Based Japanese Yen Index Monthly Chart

Chart prepared by Daniel Moss, created with Tradingview



The chart above highlights the cyclical pattern displayed by the Japanese Yen over the past 37 years, with the currency largely adhering to what appears to be an 8-and-a-half year rotation. JPY set significant bottoms against its major counterparts in late 1998, early 2007 and late 2015.

After bottoming out, the haven-associated currency then seems to outperform early in the cycle, with key highs posted roughly two years after the 1998 and 2007 lows.

Continue read on dailyfx.com