feedback
Devata Tseng

Can EURJPY and GBPJPY Break Major Resistances ?

EUR/JPY has turned bullish since the US presidential election date, trading above the uptrend line support, as a result of the weakening of the yen.

From 9th to 24th November, the bullish momentum has pushed the price up 3.72%. This morning the price hit a 5-month high of 120.15.

Last night we have seen the release of the Japanese National CPI and Core CPI YoY (ex-food and energy) figures for October, were 0.1% and 0.2% respectively, both better than the previous figures of -0.5% and 0.0%. Yet the Core CPI (ex- fresh food) was -0.4%, in line with expectations and the previous figure, marking the 8th consecutive negative figure.

The trend remains bullish, yet the current price is nearing the mid-term major resistance level at 121.00, the bullish momentum is likely to be restrained at this level.

The daily Stochastic Oscillator is above 80, and the daily RSI indicator is above 70, suggesting a pullback.

The resistance level is at 120.00, followed by 120.50 and 121.00.
The support line is at 119.50, followed by 119.00 and 118.50.

We will see the release of a series of the Japanese labour market and retail sales figures for October, to be released at 23:30 GMT on Monday 28th November.

It includes the Unemployment Rate, Job Applicant Ratio, Overall Household Spending (YoY), Large Retailer’s Sales (YoY), and Retail Trade (YoY).

The figures will likely influence the strength of the yen, and the trend of EUR/JPY.

eurjpy-d1

eurjpy-h4-

GBP/JPY has turned bullish since the US presidential election date, trading above the uptrend line support, as a result of the weakening of the yen, and the strengthening of Sterling.

From 9th to 24th November, the strong bullish momentum has pushed the price up 7.64%. This morning the price hit a 4-month high of 141.72.

The trend remains bullish, yet the price is trading below the mid-term major resistance level at 142.00, the bullish momentum is likely to be restrained at this level.

The daily Stochastic Oscillator and the daily RSI indicator are both above 80, suggesting a pullback.

The resistance level is at 141.00, followed by 141.50 and 142.00.
The support line is at 140.50, followed by 140.00 and 139.50.

Keep an eye on the Japanese labour market and the retail sales figures for October, to be released at 23:30 GMT on Monday 28th November. The figures will likely influence the strength of the yen, and the trend of GBP/JPY.

gbpjpy-d1

gbpjpy-h4

5/5(2)