Yen Pairs Weekly Update - Jan.21/25 close

USDJPY

The Dollar-Yen ended last week with price being contained by the upper trend line in a descending channel on both daily and weekly charts, stopping at the 50% Fibonacci retracement on previous daily swing low and at a confluence of moving averages SMA34 and SMA100. Weekly charts show a falling wedge thus a potential for a break up to the weekly SMA34 as a first target at 85.00/85.86 which is also the 38% Fibonacci retracement on previous weekly bearish swing, and the present level of daily SMA200. On daily charts we could have some consolidation between 82.00 and 83.00 before a clean break upwards, aiming to reach 84.00/84.50 as a first target, and then the. We are trading inside a triangle formation with a slightly ascending move, and although this week started with a bearish move towards previous week lows, my views for this pair are more oriented to the bullish side.

EURJPY

Weekly charts for the Euro-Yen show a descending triangle which could indicate a further continuation of the strongly bearish trend. However we also have a neat double bottom formation and the upper trend line of the channel has been pierced both on weekly and daily charts. Price has reached the daily SMA200 from where we could see a bounce back down to a retest of the broken level (110.50/111.00) and I would expect some consolidation between these prices and Friday highs at 112.40/50 with a further continuation to the upside on the following days. If resistance at 113.00 is broken, the next level to watch would be 115.00/15 (38% weekly Fibonacci retracement on previous swing low).

GBPJPY

The Geppy held all previous week in a consolidation above daily SMA100 and came quite near the SMA200. However on yesterday the price had a strong fall and is presently trading back under the SMA100. Weekly pattern looks like a descending triangle and price stopped last Friday at around 132.00 and the SMA34 level. I would expect a further fall towards weekly lows below 127.00, but the strong support area at 129.40/130.40, marked by the SMA34 and SMA100 and the confluence of the middle line of daily Bollinger Bands turning to the upside, could surprise us with a bounce and break of the upper trend line of the weekly descending channel, aiming to a 50% Fibonacci retracement on previous swing low and upper Bollinger Band at around 136.00.