JPY: a possible outcome – FXStreet Signals

Gonçalo Moreira, CMT Independent Analyst

The JPY in its indexed form (equal-weighted against other 7 major currencies) has just staged a rejection of its multi-year trend line with origins in 2014-2015. The line is visible on the smaller Monthly chart at the bottom left edge of the 8-hour chart. On this one, a first layer of resistance has been reached, which if hurdled, gives the bulls the opportunity to score a reversal of multiple degrees. Our JPY exposure is still small with just one short AUDJPY triggered by the trend-following "Relative Strength Sell D" strategy (trade ID 51863374). But should this interim resistance be traversed, we will not feel reluctant to commit to more JPY longs (JPY-based pairs shorts).

North from here, key intersections are seen for the beginning of December and January which could act as tractors lifting the JPY even higher.

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Author

Gonçalo Moreira, CMT

Independent Analyst

As a trader in the foreign exchange market since 2005, Gonçalo Moreira honed his analytic and strategic skills through the Chartered Market Technician (CMT) designation. 

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