The Yen jumped range between 0.40%-1.10% on Tuesday session as Bank of Japan trims bond buying.

News: The Bank of Japan on Tuesday reduced the amount of its buying in Japanese government bonds with 10 to 25 years left to maturity and those with 25 to 40 years to maturity by 10 billion yen ($88.39 million) each from its previous operations, said Reuters.

FX OVERVIEW
  • AUDJPY: rejected at a parallel resistance at 89.00 and spotted with a double top. Immediate support finds at 89.60 below this steep fall could open to 87.50 and 87.25.

Near-term potential resistance zone remains between 89.00 and 89.40 above this 90.00 and 90.30 could possible.

At higher time frames, stiff resistance seems between 90.30 and 91.30. A break above 91.30 needed to forecast 97.00.

  • CADJPY: The price action has failed in September 2017 high. Potential support zone finds between 89.30-88.80. We believe further retracement possible.
  • CHFJPY: We advised a sell trade yesterday. Stiff resistance seems between 61.8 and 78.6 fib reactions. Selling between favors the trend aiming to support base initially 112.85.

A breach below could open to a bigger retracement to 112.00/111.80 it’s 100MA (weekly), 110.0 it’s 100.0fe and 108.00 April 2018 low.

  • EURJPY: The price action re-tested the earlier breakout level finds between 133.90-134.50 below this 133.00 exists. Potential short-term support base finds between 131.65-131.15.
  • GBPJPY: The cross again failed at 200WEMA. Support finds at 151.70 and 151.20.  A move below 151.00 needed to forecast 150.60,150.00 and 149.40.

Potential support base finds at 147.00 while holding the uptrend continues.

  • USDJPY: The recent price action remains between 112.00 and 113.50. The correction phase continues in the short term. A move below 111.90 could open to further retracement to 111.70/111.50. Deep additional support finds at 110.00.

A break above 113.45-113.75 resistance zone should help to confirm the bullish bias.

  • NZDJPY: The cross has been moving higher for seven straight weeks, finally snap the rally. Potential resistance seems at 81.40 and 81.70-81.90. We believe NZD is overly stretched, correction is imminent to 80.00 and 79.60 in the near term. Over short-term selling on every rise favor the trend. To limit the risk use sl above 84.00 targets at 79.50 and 78.00.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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