Technical Analyst, Saxo Bank Group
Summary: JPY pairs higher.
USDJPY closing in on key resistance level. A break is likely.
EURJPY trading at levels not seen since 2008 and GBPJPY at levels not seen since 2015 but there seem to be higher levels ahead
USDJPY is on course to test key resistance at around 142.25. A daily close above 142.25 will pave the way higher towards previous peak around 152.
Weekly RSI is positive with no divergence supporting the medium-term bullish picture.
To reverse the uptrend short-term a close below 138.40 is needed.
EURJPY shooting higher after taking out May peak at 151.61. EURJPY is trading at levels not seen since 2008. Some resistance at around 150.80. See monthly chart.
Weekly RSI is close to cancelling its divergence and if it does (a close above horizontal dashed line) it will support the picture of higher EURJPY levels.
Medium-term EURJPY is trading in a rising channel pattern. There is divergence on monthly RSI but the indicator is breaking its falling trendline indicating the divergence could be cancelled with even higher EURJPY levels to follow.
To demolish the bullish trend short-term a close below 138.80 is needed.
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