Important JPY Pairs’ Technical update: 22.03.2017


With the present run for risk-safety providing noticeable strength to safe-havens, USDJPY dropped below 111.30-50 horizontal-region and a closing break beneath the same could flash brighter chances of its extended south-run towards 110.70 & 110.20. Given the pair keep trading down after conquering 110.20 support, the 109.40 & 108.60 might offer intermediate halts prior to dragging it towards 200-day SMA figure around 108.00. In case if the 111.30-50 area again play its role in triggering the pair’s U-turn, 111.85, 112.30 & 112.50 are likely nearby resistances to watch. However, the quote’s additional up-move beyond 112.50 might find it hard to surpass 100-day SMA figure of 113.30, which if cleared enables it to aim for 114.00 and 114.50 numbers to north.



Even if the JPY strength dragged EURJPY to test 120.00 support-confluence, oversold RSI on H4 and the pair’s repeated failures to break near-term important level indicates its pullback towards 120.30 & 120.50 immediate resistances. During the quote’s extended up-move above 120.50, the 120.70 and 121.20 are likely following resistances that should gain traders’ attention before the channel’s upper-line figure of 121.40 comes into lime-light. If at all price recovery clears 121.40, it becomes wise to expect 122.00 to appear on the chart. On the contrary, break of 120.00 – 119.90 can act as a trigger for the pair’s additional south-run to 119.50 & 119.00. However, 118.65 and 118.20 may offer strong supports after the pair plunges below 119.00.



Alike previous two pairs, GBPJPY also trades at short-term important support-zone of 138.45-55 and signals pullback to 139.00. In case of the pair’s extended recovery beyond 139.00, the 139.60 and the 140.00 can entertain short-term buyers before offering them 140.55-60 resistance-area, which is expected to limit the pair’s following up-moves. Should Bulls dominate prices and clears 140.60, the 141.00, 141.20 & 141.80 might come forward. Meanwhile, pair’s break of 138.45 can fetch it to 137.80 and the 137.00 ahead of reigniting possibilities to witness January lows, around 136.40. Given the quote fails to respect 136.40, sellers can target 135.30 support-mark.



Although break of four-month old ascending trend-line pushed AUDJPY to re-test early January lows, 100-day SMA, at 85.10, restricts the pair’s present downturn and might support it to reclaim 85.90 support-turned-resistance-line. While pair’s successful closing above 85.90 negate its latest breakdown, 50-day SMA figure of 86.40 and the 86.70 can confine its following advances ahead of 87.30, including descending trend-line mark, gains importance. Alternatively, 100-day SMA’s inability to confront bears could further drag the quote to 84.50 and the 83.75 support-levels. If sellers dominate prices after 83.75 break, the 83.20 and 82.60 can come in their radars.

Cheers and Safe Trading,
Anil Panchal