The Yen Weakens Further In Mid-Week Trading

• 21 Feb 2018

USD/JPY

The USD/JPY pair has made a reversal in terms of price action which has also been cemented with a momentum reversal on MACD. RSI also has an upward trajectory, however, the bullish move may be short-lived. There is a fairly marked bearish trend-line which the pair is approaching which has provided a strong resistance area on several previous occasions. It is likely the trend-line will serve the same purpose on this occasion.

Impact event: FOMC Meeting Minutes will be released at 21:00 GMT+2 and will impact all USD pairs.

CHF/JPY

The CHF/JPY pair has broken the 100- day moving average to the upside and is approaching the 50-day moving average. This suggests that the long-term trend is bullish, however, a break of the 50-day moving average will provide a snapshot of shorter-term horizons. RSI supports the bullish move, whilst MACD remains in bearish territory.

GBP/JPY

The GBP/JPY pair has broken the 150.49 price level to the upside, cementing the bullish sentiment. The next target is likely the 20-period EMA which had previously served as a support line for the pair. RSI confirms the bullish move and MACD as undergone a momentum reversal.

Impact event: Average Hourly Earnings Index data will be released at 11:30 GMT+2 and will impact all GBP pairs.

CAD/JPY

The CAD/JPY pair has begun a climb towards the 23.6 Fibo level, which in general, is not a significant resistance area. A momentum reversal on MACD and a revival from the 30 support area on RSI confirms sentiment has now turned more bullish.