Can Japanese authorities keep up their jawboning game strong or will the yen’s rally fizzle soon?
Here’s a setup I’m watching on Guppy!
Yen pairs have been on the retreat, as Japanese officials have been dropping intervention hints left and right!
But how long can the currency keep this rally up?GBP/JPY tumbled from the 168.00 handle but seems to be easing up on its decline, pausing to find some support at the 38.2% Fib.
If this is enough to keep losses in check, the pair could resume the rally back up to the swing high and beyond. A larger pullback could reach the 50% Fib at 164.30 or the 61.8% level that’s right around an area of interest.
Now the latter is looking like a prime entry point for more conservative traders (like me!) looking for a nice reward-to-risk ratio.
Did I mention that it lines up with a former resistance zone, the 163.50 minor psychological level, the 100 SMA dynamic inflection point, and the broken descending triangle resistance?
The moving averages just made a fresh bullish crossover to confirm that pound buyers might step up their game. In addition, Stochastic is approaching oversold levels to reflect exhaustion among sellers soon.
In terms of top-tier catalysts, there’s not much in the way of data releases from the U.K. and Japan for the rest of the week. I’d stay on the lookout for more jawboning among BOJ officials, though!
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