Technical Trade Setups on USD/JPY, EUR/JPY and GBP/JPY


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USD/JPY FORECAST – TECHNICAL ANALYSIS

After a strong rally over the last couple of sessions, USD/JPY reversed to the downside on Tuesday following an unsuccessful attempt at breaking through resistance at 148.90, with the bearish move reinforced by falling U.S. bond yields. If losses accelerate, support is seen at 147.40, followed by 146.00.

On the flip side, if the bulls regain control, which seems a highly likely scenario given the improved outlook for the U.S. dollar in light of the Fed’s reluctance to cut rates prematurely, the first technical ceiling to watch appears at 148.90 and 150.00 thereafter. On further strength, the focus will be on 152.00.

USD/JPY TECHNICAL CHART

USD/JPY Chart Created Using TradingView

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EUR/JPY FORECAST – TECHNICAL ANALYSIS

EUR/JPY has fallen over the past two weeks, guided lower by a bearish downtrend line extended off January’s highs. Following this move, the pair is stalking its 100-day SMA at 159.00. Bulls must firmly defend this floor; failure to do so may bring 158.30 into play, and maybe even trendline support at 157.00.

In the event of a bullish turnaround, trendline resistance at 160.00 will be the first barrier against an upward climb. While overcoming this technical barrier could prove difficult, a decisive breakout could open the door to a rally towards 161.00. Looking higher, all eyes will be on 161.60 and 164.00 thereafter.

EUR/JPY TECHNICAL CHART

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EUR/JPY Chart Created Using TradingView

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of clients are net long.




of clients are net short.

Change in Longs Shorts OI
Daily 13% 3% 5%
Weekly 46% -7% 3%

GBP/JPY FORECAST – TECHNICAL ANALYSIS

After reaching its best level in over 8 years near 189.00 last month, GBP/JPY has lost some ground, but has managed to establish a base in the vicinity of 185.50. If the pair holds above this area, buying interest could start gathering strength, paving the way for a possible retest of January’s multi-year high.

Conversely, if sellers unexpectedly return and push prices below 185.50, bearish pressure could intensify, creating the right conditions for a pullback towards 184.20, right around the 100-day and 50-day simple moving average. Below this zone, trendline support at 181.85 becomes the next critical floor to monitor.

GBP/JPY TECHNICAL CHART

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GBP/JPY Chart Created Using TradingView





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