Action on the Japanese Yen this week warrants extra attention to be paid to yen crosses. Yen made substantial gains during the whole of last week on every chart except against CHF. Late in the week those gains look to have been consolidated in bear flag patterns. All charts 6hr.
USD/JPY – the only time this pair was lower was briefly in March after the earthquake and tsunami. Current price is below the previous all-time low from 1995. Bank of Japan may intervene but they also know the effects of intervention are temporary at best.
EUR/JPY – hasn’t yet retested previous lows at 113.60 area. Now wouldn’t that level be a good short, coinciding with the top of the falling band range.
GBP/JPY – looks set to be first to resume downtrend.
AUD/JPY – pressure is on the low end here. Hope no one took the recent advice of Goldman Sachs to buy this pair.
CAD/JPY – relative CAD strenght keeps still this pair in a sideways range for the last two months.
CHF/JPY – only the Swiss Franc is in demand more than JPY. May be another leg down before another attempt at 98.
USD/JPY Daily chart with two currency interventions marked and what followd. Say no more.