Yen Pairs Weekly Update - Feb. 04/08 close

USDJPY

The Dollar-Yen has been trading and following along the upper trend line of the weekly descending channel and middle line of Bollinger Bands since early January, and only today has started to pierce to the upside but barely trading above. On the daily charts, we have a double bottom which can be a signal for a good bullish correction, however price is still below the daily SMA100 as of today and we would need a stronger momentum for a further push and break towards the weekly SMA34 at around 84.50 (between the 127% and 138.2% Fibonacci extension on the previous daily swing high). If the resistance shows a clear break, first target would be the previous highs at around 83.70.

EURJPY

This pair is starting to form a symmetrical triangle on the weekly charts, and still inside the boundaries. The Daily SMA200 was pierced in late January but price closed last Friday just below. This week has given a steady though slow ascending move, bringing the pair again at the upper line of the daily descending channel which, if finally broken would lead us to revisit the highs at 114.00 on a first step, then psychological level 116.00 in extension of the previous daily swing high as a second target. I would expect it however to consolidate for a while before the bullish run.

GBPJPY

The Geppy is still as of today in a consolidation mode barely above the daily SMA200, at the neckline of an inverted head and shoulders pattern that started mid-November 2010 which gives us a projection of around 700 pips to the upside targeting psychological level 140.00 on a longer term. By now, if SMA200 and price level 133.00 clearly break, next target would be a retest of the previous weekly highs at around 134.00/30.