JPY insights: Near-term trend is supportive but the market needs to take out the key resistance levels and also need a follow up buying.
AUDJPY may have formed a double bottom between 70.70-70.40. As long as 70.40 is supported, watch out for 74.00 and 76.00$. I sense that JPY crosses have bottomed FOR NOW and could head higher as long as recent lows hold.
USDJPY wiped-out five-day losses from overnight strength and saw the biggest single-day rally in the past one year. The near-term trend seems to have reversed sharply, after four days of consecutive losses. There is a probability of more strength in the next one or two sessions, but it could face stiff resistance ahead of 107.00-107.20. On the downside, 106.30 and 105.50 are going to be an essential support zone in the near-term. As long as 106.30 is protected, there is a chance of an upside breakout through 107.20 levels and could rally towards 107.70-108.00 level zone.
EURJPY’s near-term trend is supportive but the market needs to take out the last week’s high at 118.90 to confirm the trend once again. In this case, 120.80 could be the next target. So far, the cross traced out a double bottom pattern between 117.55-117.50 levels.
EURCHF’s near-term trend seems to have reversed sharply after two weeks of continuous selling pressure. Past seven-days trading pattern indicating the cross has been trying to find support via a double bottom pattern between 1.0860-1.0840 levels. As long this zone is protected, watch out for 1.0960. A decisive break out above 1.0925 could strengthen this view.
Will the rally last -long is the crucial question? We sense that current positive sentiment is not a permanent game-changer unless we get a clear picture of the trade war.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
Have a question? Let us help!
A KTM Analyst is ready to assist you, click on the comment section below