Is the Yen Set for a Comeback? Analyzing EUR/JPY,GBP/JPY,CHF/JPY

11 wrz

The Japanese Yen (JPY) has been one of the weakest currencies in the past three years, with some pairs experiencing a significant 70-80% devaluation, particularly against CHF, EUR, and GBP (CHF/JPY, EUR/JPY, GBP/JPY).
However, since reaching a low in early July, the JPY has shown signs of reversing.

When looking at the JPY Index (see posted chart), we can observe that the price recently broke above the falling resistance line within its downward channel.
After initially stalling at resistance, as marked by a bearish Pin Bar, the subsequent fall lacked continuation and instead reversed upwards.
Currently, the JPY is on the verge of a significant breakout.

If this breakout occurs, the technical target for the next mid-term move is around 860, which would represent a potential 10% appreciation for the Yen.

Key JPY Crosses to Watch:

EUR/JPY:



After breaking out of its rising channel, EUR/JPY confirmed the breakout as valid and has begun a downward trajectory. Yesterday's strong bearish engulfing candlestick suggests that further downside is highly likely. A possible first target could be the 150 zone.

GBP/JPY:



GBP/JPY attempted to recover above its broken support but failed to hold those gains. Like EUR/JPY, GBP/JPY also printed a strong bearish engulfing pattern yesterday.
This suggests a lower high may now be in place, with potential downside targets around 178.50, followed by the 170 zone, which seems a strong possibility.

CHF/JPY:

tradingview.com/chart/GfczDMMy/


CHF/JPY has seen one of the largest devaluations of the Yen, amounting to almost 80%. The top in this pair was marked by a head & shoulders pattern, and the price is currently sitting at the neckline. A break below this level seems imminent, with 160 being a likely target. If the correction deepens, we could even see a move toward the 151 level.

Conclusion:
These are long-term predictions, and I anticipate these movements to materialize by the end of the year.

P.S: Stay updated on these charts as conditions evolve. These predictions are based on technical analysis and market patterns for long term, so monitoring changes is crucial.

Best Of Luck!
Mihai Iacob