TriumphFX Forex Analysis – JPY Pairs – October, November & December 2020


AUDJPY – Daily and 4 Hour Charts

AUDJPY – Daily Chart
AUDJPY – 4 Hour Chart

As suggested in our last JPY chart analysis, price was bullish and swung higher.

The AUDJPY is clearly up-trending on the daily chart – price has formed a series of higher swing highs and higher swing lows. The daily moving averages are moving sideways, signalling market indecision – the uptrend could becoming to an end.

The 4 hour chart shows a recent downtrend. The moving averages have crossed bearish and widening, suggesting that the downward direction could continue.

Trading opportunities may exist around any of the identified horizontal levels, around the 4 hour and daily moving averages and around the 4 hour diagonal resistance areas.

The Reserve Bank of Australia (RBA) have kept rates at 0.25% (a record low). Policymakers are now focused on economic recovery created by the COVID-19 crisis. The board believe they recovery will be both uneven and bumpy. Low rates and economic stimulus is likely to continue until unemployment levels and other economic indicators are more satisfactory.

The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well under the current COVID-19 economic crisis.

CADJPY – Daily and 4 Hour Charts

CADJPY – Daily Chart
CADJPY – 4 Hour Chart

As suggested in our last JPY chart analysis, price reversed around 78.20 and the shorter-term moving average.

The daily time-frame shows a clear bullish move but overall CADCHF is looking indecisive. The daily moving averages are tight and moving sideways – confirming the market indecision. Price action has formed a slight bearish channel.

The 4 hour time-frame shows a clear downtrend. The moving averages are bearish and widening, suggesting that the downside direction could continue.

Selling opportunities may exist around the dynamic resistance of the daily and 4 hourly moving averages, around the bearish channel resistance area and around the horizonal resistance levels at 81.40 and 81.80. A bearish move could be rejected or reverse around the channel support area and around the horizontal support levels at 78.00 and 74.80.

The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well under the current COVID-19 economic crisis.

The Bank of Canada (BOC) continues to keep rates at the low of 0.25%. Policymakers have announced that there are signs of some recovery after the economic crisis caused by COVID-19 but the BOC will continue their quantitative easing program. The BOC are expecting to see economic growth from 2021 onward.

EURJPY – Daily and 4 Hour Charts

EURJPY – Daily Chart
EURJPY – 4 Hour Chart

EURJPY has been bullish.

Price has formed a large bullish move on the daily chart and is currently in a retrace phase. EURJPY has formed higher swing highs and lows, signalling an uptrend. Price is looking a little indecisive though. The moving averages confirm this – they have crossed bullish but are moving sideways.

The EURJPY is down-trending on the 4 hour chart. The 4 hour moving averages are bearish and widening, suggesting that price could move lower.

Trading opportunities may exist around the 4 hour trend resistance area, around the daily and 4 hourly moving averages and around the horizontal levels at 119.30, 122.50, 124.10 and 126.55.

The European Central Bank (ECB) has recently become more optimistic about the Eurozone’s economic future. Strong economic stimulus and low interest rates will need to remain to support growth and inflation though. The interest rate continues to be at the record low of 0.00%.

The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well under the current COVID-19 economic crisis.

GBPJPY – Daily and 4 Hour Charts

GBPJPY – Daily Chart
GBPJPY – 4 Hour Chart

As suggested in our last JPY Forex analysis, price has been forming higher swing highs and lows.

GBPJPY is up-trending and is currently in a retrace phase. Price action has formed a bullish channel. The daily moving averages are currently moving sideways, suggesting market indecision.

The 4 hour time-frame is showing a recent bearish move but price is overall indecisive. The moving averages are bearish and widening, suggesting market indecision.

Trading opportunities may exist around the daily and 4 hourly moving averages, around the support and resistance areas of the bullish channel and around any of the identified horizontal levels at 125.75, 129.35, 131.75, 133.25, 139.80, 141.85, 144.50 and 147.40.

The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well under the current COVID-19 economic crisis.

The Bank of England (BOE) has set the interest rate at a record low of 0.10%. Policymakers believe that the UK will take longer to recover from the COVID-19 economic crisis than first initially thought. They have warned about cutting rates below 0.00%, meaning that a negative rate is unlikely in the near future.

USDJPY – Daily and 4 Hour Charts

USDJPY – Daily Chart
USDJPY – 4 Hour Chart

The USDJPY reversed around 106.20, as suggested in our last JPY chart analysis.

Price has since been bearish and has formed a number of daily lower lows and lower highs – the USDJPY is down-trending. The daily moving averages are bearish and steady, signalling that the downside momentum may continue. Price action has formed a bearish channel.

On the 4 hour chart, price is also down-trending.

Selling opportunities could exist around the bearish channel resistance area, around the trend resistance area, around the dynamic resistance of the moving averages and around the horizontal resistance levels at 106.45, 107.00, 108.00, 109.60, 111.30 and 111.95. A bearish move may find support around the bearish channel support area and around the horizontal support levels at 104.45, 104.10 and 103.05.

The Federal Reserve have suggested that rates may remain low for the short-term future. Rates currently remain at the low of 0.25%. Inflation is around target and the US job market continues to be robust.

The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well under the current COVID-19 economic crisis.

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