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Japanese Yen weakening has paused against both the USD and EUR
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USD/JPY has pulled back from multi year highs but remains in trend for now
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While EUR/JPY has moved up, the May high has held. Will it break new ground？
USD/JPY – TECHNICAL ANALYSIS
Last week, USD/JPY took out the Q4 2018 high but fell just short of the Q4 2017 peak of 114.735 to post a high of 114.701. That makes 114.70-73 a level of potential resistance.
Conditions for a bullish triple moving average (TMA) turned on when the 10-day simple moving average (SMA) crossed above the 55-day SMA on 29th September. Both the 10-day and 55-day are above the 200-day SMA and all have positive gradients.
It turned off on October 22nd when the price moved below the 10-day SMA. This could indicate a pause in momentum.
Should the price move above the 10-day SMA and close there, it would signal that the TMA has turned back on and may see bullish momentum further evolve.
On the downside, near term support could be at the recent previous lows of 113.415 and 113.004 or further down at the pivot points of 112.079, 110.802 and 110.447.
A breach and close below the recent low of 113.415 might suggest that the ascending trend channel is no longer intact. A move back inside the channel might indicate that the trend could continue.
EUR/JPY TECHNICAL ANALYSIS
EUR/JPY broke out of a 3 month range earlier this month as it took out several topside resistance levels. It moved toward the 3 year high at 134.124 but only got as far as 133.481 before pulling back.
All shot, medium and long-term SMAs have a positive gradient which might indicate bullisness. However, the price has moved below the 10-day SMA and this may suggest a pause in short-term momentum and potentially a consolidation phase. If the price moves back above the 10-day SMA, bullish momentum could evolve.
There are possible support levels at the recent low of 131.680 and a pivot point at 130.744. On the topside, there might be resistance at the previous highs of 133.481 and 134.124.
Source: DailyFX
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