Most JPY pairs have had a good run the past couple of weeks and are starting to look a little stretched. Daily charts are looking very interesting where most charts are approaching longer term resistance. History tells us that spikes have been quickly sold into and that new lows follow. It’s probably Yen repatriation while prices are high. Actually I have no idea because all I’m really interested in is the chart.
But first, I’ll be looking for some daily ranges to the downside as price looks overheated in the short term. The following yen pairs are the clearest to me.
USD/JPY Daily – If this is the leader of the yen pairs then a breakout is clear
USD/JPY 1hr – showing great symmetry.
GBP/JPY Daily – Was this really at 250!
GBP/JPY 1hr – 300 pips in 2 days
Yen pairs opened the week with large gaps up then extended the gaps early in the Asian session. By European open those gaps have almost closed and daily candles are looking very bearish so far. Will add more charts when daily candles are complete.