The Japanese Yen snatched our attention today after appreciating against almost every single G10 currency.
As investors adopted a cautious stance ahead of the earnings season, global stock markets retreated from record highs with the general risk-off mode boosting appetite for safe-haven currencies
The Swiss franc also performed well on Monday, gaining ground against its major counterparts excluding the British Pound and Japanese Yen. Interestingly, the Dollar slipped towards a three-week low while Sterling rallied across the board as the UK officially eased some of its lockdown restrictions.
This could be a wild week for yen crosses as the risk pendulum swings back and forth. Not only do we have earnings season but speeches from financial heavyweights, important economic reports and the third wave of Covid-19 sweeping through Europe.
USDJPY breakout on the horizon?
The USDJPY remains bullish on the daily charts as there have been consistently higher highs and higher lows. However, prices are trading within a range with resistance around 109.84 and support at 109.00. A solid break below the 109.00 support could signal the end of the bullish trend with the next key point of interest at 108.30. Alternatively, a strong move above 109.84 is likely to open the doors towards the 2021 high of 110.956.
GBPJPY make or break?
Ok, the title sounds slightly dramatic but this could be a turning point for the GBPJPY. After dropping over 300 pips last week, it looks like bears are turning serious. Should the 150.00 region act as reliable support, this could become the new higher low that pushes prices back towards 152.00. Alternatively, a solid breakdown and daily close under 150.00 could result in a selloff towards 148.50 and lower.
EURJPY presses against 130.50
The title says it all. The EURJPY remains bullish on the daily charts. Prices are trading above the 20 Simple Moving Average while the MACD is above 0. A solid breakout above 130.50 could open a path towards 131.70. Should 130.50 prove to be a stubborn resistance (yet again) a decline back towards 129.50 and 128.30 will be on the cards.
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