The Yen Technical Analysis – USD/JPY, AUD/JPY, CHF/JPY Charts

The Yen Technical Analysis – USD/JPY, AUD/JPY, CHF/JPY Charts

November 6, 2022 0 By Alicia Hagen

USD-JPY Technical Picture – Neutral

USD-JPY dropped around 0.5% over the previous week, following Friday’s 1% price decline. This week’s early sessions saw the pair losing steam at the psychological level at 150. Meanwhile, the 26-day EMA underpinned prices multiple times over the week.

Wednesday’s intraday attempt couldn’t break beneath the 23.6% FIB retracement from the May-October move. Markets might have to focus on that level again soon. Though the upside remains intact, a declining triangle setup prints a bearish bias on the price chart.

A 24hr closing beneath the triangle’s foothold –aligned with the 23.6% Fibonacci mark, would open the downward path, though the price should first dispatch the 26-day Exponential Moving Average. That places the pattern’s measured move target near the 100-day SMA.

The closest 38.2% FIB support, which contained price actions in September, might disrupt price action. Alternatively, USD-JPY would test the 150 psychological mark on a break beyond triangle resistance.

The RSI (Relative Strength Index) trended sideways within the previous week but remained beyond its midpoint.

CHF-JPY Technical Picture – Bearish

CHF-JPY broke beneath a support trend line from May, following a substantial move that pierced the 50-day Simple Moving Average. The weekly chart shows the Relative Strength Index crossed beneath the overbought at the 70 mark, indicating a sudden momentum change.

The 24hr Relative Strength Index dropped beneath the oscillator’s middle level. The breakdown emerges after multiple months of battle near the 150 mark.

A lower break would clear the road to the 100-day Simple Moving Average, which braced action multiple times early this year. The trendline break dispositioned the near-term outlook lower. Still, a consolidation phase beyond the Fibonacci level remains a possibility.

AUD/JPY Technical Picture – Bullish

AUD-JPY registered its 3rd weekly, following Friday’s 2% price gain. A Linear Channel for the 2021 swing low showed the prices slightly moved out of a two-standard deviation distance, which contains nearly 95% of the price action.

Moving outside the channel prints a ‘buy sign for traders. Meanwhile, the AUD-JPY pair should have more upside climbs.

Stay tuned for upcoming financial news.