-EURJPY threatening to take 131
-GBPJPY choppy range
-CADJPY bullish base since October, but watch channel
-AUDJPY at resistance line
-NZDJPY breaks resistance line
Euro / Japanese Yen
Last week I wrote that “there are a number of wave counts at the current juncture, so confidence in the pattern is low right now. One count treats the advance to 131 as the end of an A-B-C correction (flat). This count is valid as long as price is below 131.08. Exceeding that level would indicate that a larger more complex correction is underway that could reach as high as Fibonacci resistance near 139.” The advance is picking up steam. As such, the latter count is becoming more likely. Above 131 would present an opportunity to play a break towards mentioned resistance at 139. Beware of potential channel resistance, which is at 130.60 today and increases about 50 pips per day.
British Pound / Japanese Yen
The GBPJPY advance from 118.79 is viewed as corrective. Specifically, the advance is probably part of a 4th wave. With 3 waves up from 118.79, either a flat or triangle is underway. All that is clear right now is that a correction is unfolding. From a trading perspective, we need to wait for the pattern to mature before taking a directional stand.
Swiss Franc / Japanese Yen
The CHFJPY pattern is similar to the EURJPY pattern. A 3 wave correction could be complete at 87.09. If so, then the CHFJPY should decline from near current levels (below 85.93). Exceeding 87.09 would negate the bearish bias.
Canadian Dollar / Japanese Yen
First, ignore the spike on the chart (false). There is parallel channel resistance that could come into play in the next few weeks. Bears should wait for a test of that line before considering going short. Through the bullish lens, a base has formed from the October low that could lead to a break through the mentioned line.
Australian Dollar / Japanese Yen
There is a bearish triangle count that I presented last week but the AUDJPY needs to remain below 68.33 in order for that count to remain valid. Price is testing resistance from line drawn off of the November and January highs now. Exceeding this line threatens 68.33 and beyond.
New Zealand Dollar / Japanese Yen
The NZDJPY has broken above the line that connects its November and January highs. Focus in now on 56.39 (January high). Former resistance at 50.55 is potential support. A drop to there would present an opportunity to go long against 47.70 for a run to 56.39.
Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close. He is also the author of Sentiment in the Forex Market.
Please send comments about this report to jsaettele@dailyfx.com
