11:34 November 17, 2023
We can see a strengthening of the Japanese yen on the morning of the new European trading session. The currency pairs USDJPY and EURJPY are about 0.7% in the red. The dollar’s declines against the yen can be partly explained by a correction in U.S. Treasury yields. The yield on the 10-year bond fell to 4.385%. However, the strength of the move in the JPY is greater than other pairs and no further information has emerged so far that could explain the strength of the Japanese currency.
Technically, if we look at the chart of USDJPY, there has been an uptrend for some time now. Currently, after a correction, prices have reached support at 149.60, which is derived from the lower limit of the local 1:1 system (red rectangles). This is the first area where demand could become active. However, if this level is removed, the discount could extend to 148.00, where the lower limit of the broader 1:1 geometry lies. Only the cancellation of the larger pattern could lead to a change in the trend to a downtrend according to the overbalance methodology.
Source: xStation
On the other hand, if we look at the EURJPY chart, prices are currently testing the support at 162.46, which is derived from the local 1:1 measurement (red rectangles). As the downward move deepens, the broader 1:1 geometry – the 162.10 level – falls slightly below. A break according to the overbalance methodology could lead to a further change in the downtrend.
Source: xStation5 from XTB
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