Technical Update - USDJPY rebounding strongly. EURJPY and AUDJPY Set for key tests. GBPJPY breaking key resistance
To establish a bullish trend a daily close above 149.40 is required.
Strength and trend indicator RSI is still showing negative sentiment but with divergence as illustrated by the two blue lines – the closing price 27th August was lower than the 5th August closing price. That is an indication of a trend exhaustion supporting the rebound scenario
To reverse this rebound picture a daily close below 143.40 is required. EURJPY is bouncing from key support at around 160.55.
The bounce comes after EURJPY has dipped below the support a few times but ended above every single time and now seems set to test the key strong resistance at around 164.00.
A daily close above 164.00 is likely to fuel a rally towards 167-168. In that area the 55 and the 100 DMA’s are coming down likely restricting further upside potential short-term
A break and close below 160.00 expect selling pressure to resume with potential down to 159.00-156.45.
RSI is still showing negative sentiment and if RSI is seen back below the 40 threshold it would be strong indication of EURJPY to turn bearishAUDJPY seems to be establishing a bullish trend after breaking above minor resistance at around 99.04.
If closing above 99.91 and RSI is closing above 60 threshold, a bullish trend will be confirmed.
Upside potential to the 0.618 retracement at 102.05
A daily close below 97.25 will demolish the bullish picture and establish a bearish move GBPJPY is breaking above resistance at around 192.00. If closing above a bullish trend has been established.
An RSI close above 60 threshold will confirm the bullish scenario with sort-term upside potential to the 0.786 retracement at 195.33.
It all depends on whether RSI can close above 60 threshold or not:
If rejected GBPJPY could slide back and test the support at around 188.93.
A close below will establish bearish trend