USD/JPY & EUR/JPY Daily Forecast – 28 Aug, 2020

USD/JPY reversed 10 pips from our selling opportunity at 107.05/15 to strong support at 106.05/105.95.

EUR/JPY retests the August high at 126.74 in the sideways trend & collapsed. Strong support at 125.50/40. Longs need stops below 125.25. A break lower is a medium term sell signal.

Today’s Analysis

USD/JPY look for a selling opportunity at 107.00/10, with stops above 107.25. A break higher (and weekly close above for confirmation) is a strong buy signal targeting 107.40, 107.70 and resistance at 107.90/99.

Key support at 106.05/105.95 being tested as I write this morning. Longs need stops below 105.75. A break lower targets 105.60/50 before a retest of last week’s low at 105.20/10.

EUR/JPY held good support at 125.40/20 to target 125.65/75 & 126.00/10 before a retest of the August high at 126.70/74. This was spectacularly rejected for a potential double top sell signal. Minor support at 126.10/00 but below here meets strong support at 125.50/40. Longs need stops below 125.25. A break lower is a medium term sell signal.

Obviously strong resistance at 126.65/75 again today. A weekly close above here is required for a buy signal at the start of next week, initially targeting 127.40/50.

Trends

Weekly Outlook: Neutral

Daily Outlook: Neutral

Short Term Outlook: Neutral

JPY Chart

JPY Chart

USD/JPY & EUR/JPY Daily Forecast – 28 Aug, 2020

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