Daily Technical Briefing: USDJPY Closing In On Potential Reversal Zone
- Euro Bullish Above 1.4032
- Japanese Yen Close to Key Level
- British Pound to Test 2.0500
- Swiss Franc Already Turned?
- Canadian Dollar Close to a Turn
- Australian Dollar Could Trade Back to .8600
- New Zealand Dollar In Reversal Zone
The currency pair is in an uptrend unfolding from the 1.2484 bottom and probably ahead of a significant reversal on weekly basis. The technical indicators are rising and the trading is situated above the 50-day and the 200-day SMA, currently projected at 1.3638 and 1.3361. On the Elliott Wave count we are probably finalizing C of (B)-(intermediate) and a development of (C)-(intermediate) lies ahead.
The support at 1.4136 gave way last week and the pair reached low at 1.4034. The pair trades just above the rising trend-line (4 h basis), but from the larger point of view, the slide from the 1.4281 top is still corrective and suggests renewing of the general uptrend for new highs above 1.4281.
The uptrend from 115.16 has been completed at 124.14 and a downtrend is unfolding since. The technical indicators are falling on daily basis and trading is situated below the 50- and 200-day SMA, currently projected at 122.09 and 119.60.
Our target at 117.18 has been met, but there are still no signs of a reversal of the current uptrend. Intraday expect slide twds. the 116.78 support.
A short-term top is set at 2.0652 where the pair hit a new high for the past 26 years. The technical indicators are rising after reversing at 1.9649.
The support at 2.0275 is still intact and it has provoked a sharp rise to 2.0442. Friday's trading activity reached a low at 2.0305 and from that level an uptrend is on the run, targeting 2.0543.