Yen Pairs Weekly Overview - July 22 close

USDJPY

The Dollar-Yen maintained its bearish tone last week, reaching the bottom line of a falling wedge and making a new low. In my opinion, there is still momentum to push further down to a 138.2% Fibonacci extension on the previous swing low, or even attempt to retest the level of the last spike down near round number 76.00 and the 161.8% extension. A pull back to the upper line of the wedge would be the other alternative though, looking to reach the confluence of the middle line of the Bollinger bands and SMA34.

On the daily charts we can appreciate a steep descent which could easily break down in extension to 77.65/35, the bullish alternative here would be a break of the falling wedge and attempt to reach psychological number 80.00 which also coincides with the confluence of the middle line of the daily Bollinger bands and SMA34, and the center area of the descending channel.

 

EURJPY

Last week formed an inside candle after a pull back from the bottom line of the descending channel, ending just below the SMA34 and at about the center area of the channel’s range, after having reached a 138.2% extension on the former swing low during the previous week. The trend still looks bearish and we could expect a continuation towards the 161.8% extension at around 107.30 or at least to the bottom of the channel, at round number 109.00.

On the daily charts, Friday ended on a spinning top just below the confluence of the SMA200, middle line of the Bollinger bands and SMA34 pointing down. We might have another move down towards the previous lows (109.60/50) and if that level is broken, a further fall to the bottom of the descending channel near the 127% and 138.2% extensions on the previous swing low (107.40/106.50).

 

GBPJPY

The Geppy looks sideways on the weekly charts, having reached the bottom of the range with a strong rejection on the previous week, and ending on a small inside doji last week. Although we still can have another attempt at breaking the lows (125.10/00) I would expect a pull back to the confluence of the SMA34 and middle line of the Bollinger bands and previous highs at around 130.80/131.00 before a continuation to the downside.

We have a doji on the daily charts after touching the middle line of the Bollinger bands and top of the descending channel, which should be confirmed for a fall back down to the previous lows near round number 125.00 as first target, then a possible 127%/138.2% extension towards the area between 123.30 and 122.70 as second step. On the bullish side, a break of the channel would bring us near round number 131.00 and the confluence of the SMA200 and SMA100.