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Japanese Yen Tumbles as Risk Sentiment Rebounds

Lukman Otunuga
Global risk sentiment turned positive on Friday afternoon as mixed trade data from China eased concerns over slowing global growth. With investors back in the mood for riskier assets, the Japanese Yen which is considered as a safe-haven currency tumbled across the board.

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This can be reflected on the USDJPY which is approaching the 112.00 level as of writing. A solid daily close above this point has the potential to trigger a move higher towards 113.00.

EURJPY bulls eyes 127.40

The EURJPY fulfills the prerequisites of a bullish trend on the daily charts as there have been consistently higher highs and higher lows. Prices are trading above the daily 20 SMA while the MACD has crossed to the upside. An intraday breakout above 126.50 will signal a move higher towards 127.40. If prices fail to keep above 126.50, then the EURJPY is seen sinking back towards 1250.00.

GBPJPY marches towards 147.00

Given how Brexit continues to pressure Sterling, the GBPJPY’s appreciation is clearly based around Yen weakness. A depreciating Japanese Yen should inspire bulls with enough inspiration to target 147.00 and 147.50.

CADJPY breaks above 84.00

The CADJPY is in the process of breaking above the 84.00 resistance level as of writing. With the Japanese Yen poised to weaken further amid the improving market mood, the CADJPY has scope to push higher. A daily close above 84.00 will open the doors towards 85.00 in the short to medium term.

AUDJPY gains momentum above 79.74

There is a classical breakout opportunity in play on the AUDJPY with prices trading above the 79.740 resistance as of writing. For as long as bulls can maintain control above this level, the AUDJPY is seen challenging 80.90 and possibly higher. Alternately, a move back below 79.740 will encourage a decline back towards the lower range of the bullish channel at 77.75

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This article was originally posted on FX Empire

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