The Japanese Yen Tussles With Major Pairs At Start Of Trading Week

• 13 Nov 2017

CAD/JPY

The CAD/JPY pair appears to be on the verge of a bullish break. Price action is testing the 89.42 price level which represents a previous resistance line for the pair. Momentum indicators support bullish price action with RSI maintaining a sharp upward trajectory and MACD on the verge of breaking the zero line to the upside. A break of the 89.42 price level coupled with a break of the zero line on MACD would provide weight to the uptrend.

AUD/JPY

The AUD/JPY pair appears to be at a cross road. A mild downtrend has resulted in the pair reaching previous support levels. Price action has struggled to break through the 86.93 price line and a break of this support level has resulted in a bullish candle to test the price level once again. RSI supports bullish momentum and although MACD has broken the zero line to the downside, momentum appears to be slowing. A break of the zero line (to the upside) on MACD would be required to confirm an uptrend.

EUR/JPY

The Euro’s strength over the Japanese Yen in recent trading sessions appears to be coming to an end. The pair is testing the 20-period EMA with an attempt to reach the 132.97 price level. However, a strong bullish breakout seems unlikely when the pair has been trading within the 131.23- 132.97 price level. Momentum indicators are either neutral or bearish; RSI has stalled around the 50 ‘support’ level and MACD is on the verge of breaking the zero line. Euro buyers may not have the conviction to drive prices higher.

USD/JPY

The USD/JPY pair continues to test the 20-period EMA which has been a long-term support level for the pair. A recent rejection of the 114.03 price level indicates that U.S. Dollar buyers lack the appetite to push price to a new market top. A doji candle in the previous trading session indicates relative indecision in the pair. Despite a bullish candle to open to day’s trading session, momentum appears to be waning. RSI is in neutral territory and strong bullish momentum indicated on MACD appears to be dissipating.