Yen Pairs Weekly Overview - September 16 close

USDJPY

As expected, the Dollar-Yen went back to the lows of the previous week, and stayed inside a range from Wednesday to Friday. There is no clear direction for this pair as of now, although I would expect some bearish continuation if the bottom at 76.00 is broken, in extension towards 71.80, 70.30 and 66.30 as successive medium-to-long-term targets.

On the upside, and provided 77.80 resistance level and further upper trendline of the descending channel are broken, I maintain my expectations for this pair to reach the 78.40/60 area (around the 61.8% Fibonacci retracement) 79.30 (above daily SMA100 and around the 80%) and 80.20 (last month’s highs and daily SMA200).

EURJPY

The Euro-Yen made a new low as expected, bouncing back to the upside from the 103.88 level. I would expect a push to the confluence of the middle line of the weekly Bollinger bands and SMA34, which is also the 50% retracement on the previous swing low and upper line of the actual descending channel, at around 113.30, with possible continuation to the 61.8% level and SMA100 at around 116.50 as a second target, and further to the upper trendline of the bigger descending channel at the 76.4% retracement level around 118.00/50.

On the Daily charts, a retest of the broken support at 108.00, middle line of the Bollinger bands and 50% retracement on the swing low as first target, then a follow up to the SMA34, 61.8% correction and upper trend line of the descending channel at around 109.00. A bearish move would look to target 101.50/00 in extension (127% and 138.2%) and next downwards target level medium-term is the 161.8% extension at 99.00.

GBPJPY

Another bearish week for the Geppy, reaching a new low and lower trend line of the slightly descending channel at 120.68. Our target of 120.90 was reached and second target at 120.40 would need a break of this channel.

On the daily charts we still have room to the downside to reach the lower line of the falling wedge, however we might be bottoming out this time and a retracement to retest the broken support at 123.38 (which is also the actual middle line of the Bollinger bands) and further continuation to the SMA34 is possible, targeting 125.00 resistance level (July lows). Next upwards target is the daily SMA100 and June lows resistance area (127.70/128.30). Should the wedge be broken to the downside, we would be targeting the 161.8% extension on August range at 118.80.