This article focuses on the technical outlook for USD/JPY, EUR/JPY and GBP/JPY. The piece also assesses key price levels that should be on every currency trader’s radar, discussing their potential roles as support or resistance in the coming days.
The dovish statements suggest that the BoJ’s exit from its ultra-loose position will not likely result in multiple rate hikes, as seen in other key economies recently, but rather only a few scattered ones.
In theory, this could limit the yen's recovery potential in the coming months, making it less attractive in terms of its yield differential versus its major peers. Leaving fundamental analysis aside for now, the remainder of this article will focus on the technical outlook for three important Japanese yen pairs:/JPY. We'll also assess key price thresholds that should be on every currency trader’s radar, discussing their potential roles as support or resistance levels in the upcoming trading sessions. Curious about where the Japanese yen is headed? Explore all the insights in our Q1 trading forecast. Request your complimentary copy today! USD/JPY rallied strongly on Thursday, breaking above a key ceiling at 148.90 and reaching its best mark since November last year. If upward momentum continues in the coming days, resistance looms near the psychological 150.00 level. On further strength, all eyes will be on the 152.00 area. On the flip side, if sellers return unexpectedly and spark a pullback, 148.90 should be the first line of defense against a bearish attack. Further losses beyond this technical floor could draw attention first to 147.40, and then to 146.00 if weakness persists for long.Want to understand how retail positioning may influence EUR/JPY’s near-term direction? Our sentiment guide holds all the answers. Don't hesitate, get your guide now! EUR/JPY soared on Thursday, breaching short-term trendline resistance at 160.00 and approaching another key barrier stretching from 161.15 to 161.75. Bears must fiercely defend this ceiling; a failure to do so could trigger a rally toward last year's highs near the 164.00 handle. In the event of a bearish reversal, support emerges at 159.70. Below this point, the 100-day simple moving average becomes the next potential technical floor for the market, succeeded by the 50-day simple moving average at 158.30. Further down, the focus shifts to 157.50.Feeling discouraged by trading losses? Take control and improve your strategy with our guide, "Traits of Successful Traders." Access invaluable insights to help you avoid common trading pitfalls and costly errors. After a moderate pullback in late January, GBP/JPY has mounted a strong comeback in recent days, steadily approaching its multi-year highs set around 189.00. Bulls are likely to encounter stiff resistance around these levels, yet a breakout could propel the pair towards 190.50.turn lower, initial support is positioned at 185.50. While GBP/JPY may stabilize upon testing this region ahead of a possible rebound, a breakdown could prompt a retracement towards 184.20, close to the 100-day and 50-day simple moving averages.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material.
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