Yen Pairs Weekly Overview - September 23 close

USDJPY

The Dollar-Yen didn’t reach the lows and remained last week in a tight range between round numbers 76.00 and 77.00. We could be having a double bottom on the daily charts and my expectations are for a bullish break of the confluence of the daily SMA34 and middle line of the Bollinger bands, targeting the resistance at previous highs (around 77.85) and the weekly middle line of the Bollinger bands at about 78.80. Next target on the upside would be the weekly SMA34 and August highs at 80.20. Should we have a bearish continuation and break below 75.90, the first target would be around 75.50/25, then 75.00/74.80 (daily 161.8% extension) and further fall towards 73.40/72.30 (weekly 127% and 138.2% Fibonacci extensions).

EURJPY

The Euro-Yen didn’t bottom out and continued its fall making new lows at 102.20, from where the price bounced back for a retest of the break but closing below the previous week’s lows (103.70). The pair didn’t meet our bearish targets either, although we can expect some extension to the daily 127% and 138.2% from last swing low, in the support area between 101.70 and 100.80. Weekly 161.8% extension is just below round number 102.00, but the charts are showing a falling wedge and we might have some correction towards the upper trend line of the descending channel it is inscribed in, around 107.95/108.00.

GBPJPY

The Geppy didn’t bottom out either and breached through the weekly 161.8% extension as we had expected in our bearish scenario, going beyond our target at 118.80. The price went back up for a retest of the daily 161.8% extension on Friday, closing very near that level. We also have a steep falling wedge here and potential recovery up to previous broken support at around 123.10 as first target, then the upper line of the descending channel and next resistance level in the area between 124.25 and 125.50.