Important JPY Pairs’ Technical Outlook: 04.05.2017


Although USDJPY’s recovery from 108.30-35 support-zone presently helps the pair to meet seven-week high, the 113.20-30 resistance-confluence, comprising 100-day SMA & upper-line of near-term descending trend-channel, seems a tough nut to crack as the RSI is also near the overbought levels. As a result, pair’s pullback to 112.30 and then to the 50-day SMA level of 111.70 becomes more likely before the 110.50 and the 110.00 could reappear on the chart. Should prices drop below 110.00, the 109.20 & the 108.35-30 again grabs attention, breaking which channel support-line at 107.80 might give rise to chances favoring pair’s U-turn. Alternatively, if the quote manages to close beyond 113.30, it can aim for 114.00 and the 114.40 nearby resistances while the 115.00 and the 115.55-60 could please Bulls during its run-up beyond 114.40.



With the AUDJPY’s inability to drop below fortnight old ascending trend-channel, it seems wise to expect the pair’s pullback towards 84.00, 84.20 and the 84.55 consecutive nearby resistances. If price-recovery gets stretched beyond 84.55, the 84.90 and the channel’s upper-line, at 85.35-40, may trigger its U-turn, failing to which can help buyers to target 85.80 & the 86.20 upside numbers. Given the pair’s favor to sellers, with a dip below 83.30, the 82.90 & 82.40 should be observed closely, breaking which 81.80 and April lows around 81.50 can offer intermediate halt during the pair’s southward trajectory to 61.8% FE level of 80.80.



Considering the CADJPY’s momentum during last fortnight, the pair seems portraying a short-term “Rising-Wedge” Bearish formation. However, present up-move could end-up flashing 82.50-55 on the chart before the pattern resistance, near 82.75-80, tries to limit its following advances. If prices fail to respect 82.80, chances of witnessing a rally to 83.00 and then 83.30 can’t be denied, which if broken may give rise to 83.70 and the 84.20 north-side numbers. On the downside, 82.00 and the formation support of 81.65 are likely important rests that should be watched, breaking which the bearish pattern gets confirmed and can fetch the quote to 81.20. Should Bears dominate momentum after 81.20 break, 80.55 and the 61.8% FE level of 80.10, closely followed by 80.00 psychological magent, should come into the sellers’ radar.



Even after breaking a two-month old descending trend-line resistance, the NZDJPY currently witnesses a pullback towards resistance-turned-support around 77.10; though, the pair is expected to bounce-off the same, if not, then 76.75 and the 76.30 can again be witnessed. Given the pair’s inability to stop its downside below 76.30, the 76.00 and the April low around 75.60 may become following supports to watch. Meanwhile, 77.80 and the 78.00 can act as immediate resistances during the pair’s U-turn, breaking which 78.40 and the 78.80-85 horizontal-line seem crucial. In case if buyers propel prices beyond 78.85, 79.60 and the 80.00 can be their favorite numbers.

Cheers and Safe Trading,
Anil Panchal