Japanese Yen, USD/JPY, US Dollar, CHF/JPY, Swiss Franc – Talking Points
- USD/JPY is eyeing off the 24-year excessive, however obstacles stay in play
- CHF/JPY is caught in a spread, however momentum is likely to be gaining for a breakout
- If the Yen weakening pattern continues, how excessive can USD/JPY and CHF/JPY go?
USD/JPY has damaged above a descending pattern line and is above a sequence of Simple Moving Averages (SMA). This would possibly counsel that bullish momentum is evolving and a transfer towards because the 24-year excessive made final month might unfold.
That peak of 139.39 might supply resistance. Ahead of it, the 78.6% Fibonacci Retracement of the transfer from 139.39 to 130.39 is at 137.46. That stage coincides with a excessive made close to the tip of July and would possibly supply resistance.
On the draw back, a break level at 135.57 presently has the 34-day SMA close by and it could present assist. The 55-day SMA additionally lies slightly below this stage, presently at 135.39.
Further down, a cluster of break factors and earlier lows within the 131.25 – 131.75 space would possibly present a assist zone.
CHF/JPY has traded in a 137.17 – 143.75 vary for two-months and these ranges might present assist and resistance respectively.
At the tip of final week, it crossed above the July peak of 143.11 and seems set to check the seven-year excessive of 143.75 with bullish momentum doubtlessly rising.
A bullish triple transferring common (TMA) formation requires the value to be above the brief time period Simple Moving Average (SMA), the latter to be above the medium time period SMA and the medium time period SMA to be above the long run SMA. All SMAs additionally must have a optimistic gradient.
Looking on the 10-, 55- and 100-day SMAs, the standards for CHF/JPY bullish TMA have been met.
The latest low of 140.40 is simply above the 55-day SMA and would possibly present assist.
An ascending pattern line extending from the mid-May low of 127.51 and by the low of 137.17 from earlier this month might present assist, presently at 139.60.
Further down, the break level at 137.80 is a attainable assist stage forward of the 100-day SMA, presently dissecting at 136.94.
— Written by Daniel McCarthy, Strategist for DailyFX.com
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