Authored by TD Markets
In recent market trends, the Japanese yen (JPY) has experienced a decline in its strength against major currencies. As economic factors and global events unfold, investors and forex traders are observing a shift in the dynamics of the currency markets. This article delves into the reasons behind the diminished strength of JPY while shedding light on the advancements made by other major currencies.
The USDJPY Performance
The USD weekly candle has closed above 140.222 which correlates with target 1 and target 2. The new Higher High has been confirmed after the weekly candle last week. We are still bullish overall on this pair, new support was found at the price point of 140.222.
Price is still above the 52-week average, suggesting more upside. We are in the buyer’s zone, daily candles above 140.222 could be the place where more volumes come in to take the price to the first target identified at 144.449.
The CADJPY Performance
The previous High & Higher High has been taken out by 2 weekly candles. The 3rd Higher High has been formed at a price level of 104.194. We know it is a completely Higher High because the price has now moved past it and formed a new higher high at price point 106.155. Target has been reached at 106.155 and now looking for more strength to hit a target (CADJPY) of 108.844.
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The GBPJPY Performance
The Breakout above 174.210 has given us momentum further to the upside. We can see that last week’s candle as suggested could provide further upside. It has pushed up from 174.210 to 176.777. The longer/higher time frames still have a bullish stance and structure.
Target 1 has been reached at 179.611. We now look for further upside to 186.644. Traders should monitor the Yen pairs carefully; we could see some resistance after the bullish thrust or impulse.
Final Thoughts On Today’s Analysis
In conclusion, the Japanese yen (JPY) has experienced a decline in strength against major currencies due to various economic factors and monetary policy divergence. While JPY weakens, currencies like the USD, EUR, GBP, AUD, and NZD have made significant advances. Understanding these shifts is crucial for market participants to make informed decisions and manage risk effectively in the evolving forex landscape.
