Japanese Yen Rally Continues Against US Dollar and Swiss Franc. Will CHF/JPY Break Range?


Japanese Yen, USD/JPY, US Dollar, CHF/JPY, Swiss Franc- Talking Points

  • USD/JPY has pulled again from an historic excessive, however assist ranges are in view
  • CHF/JPY seems to have arrange for some vary buying and selling, will a break unfold?
  • If the Yen weakening development resumes, will USD/JPY take CHF/JPY increased?


USD/JPY has pulled again from a 24-year excessive made final month and is round 5% under that peak of 139.39.

The transfer decrease broke under an ascending development line and progressed to pierce the decrease band of the 21-day easy transferring common (SMA) based mostlyBollinger Band. When the value moved exterior the higher Bollinger Band in July and then closed again contained in the band, it marked the highest in that bullish run.

For merchants trying to purchase this dip in USD/JPY, a detailed again contained in the Bollinger Band could be one thing to look at for clues on the tip of the bearish run. It needs to be famous although that previous efficiency isn’t indicative of future outcomes.

The value is under the 10-, 21- and 55-day SMAs however stays above the 100- and 260-day SMA. This would possibly recommend that quick and medium-term bearish momentum is unfolding whereas underlying long run assist stays.

A transfer again above the 10-, 21- and 55-day SMAs could recommend a resumption of bullish momentum.

Support may very well be discovered on the earlier low of 131.50, which is simply above a few break factors at 131.35 and 131.25.

On the topside, resistance could be provided on the break factors of 134.27, 134.75 and 134.95 or on the prior highs of 137.46 and 139.39.

Chart created in TradingView


CHF/JPY has traded in a 138.68 – 143.75 vary for six weeks and these ranges could present assist and resistance respectively.

This is regardless of the Yen appreciating considerably towards many different currencies within the final week.

It is nearing the underside finish of that vary and if it strikes decrease, assist may very well be on the break factors of 137.80, 136.18 and 134.62 or on the mid-June low of 134.06. Above these ranges, the 55-day easy transferring commons (SMA) could present assist, presently at 138.07.

On the topside, resistance could be the 10- and 21-day SMAs presently at 141.45 and 140.68 respectively. The mid-July peak of 143.12 might also provide resistance.


Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter

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