JPY USD Currency:Is JPY Ready to Reclaim All-Year High?

JPY USD Currency:Is JPY Ready to Reclaim All-Year High?

The JPY USD currency pair has been a hot topic in the world of finance this year, with many investors closely watching its movements. After experiencing a series of ups and downs, some experts are predicting that the JPY may be poised to reclaim its all-year high. In this analysis, we'll take a closer look at the factors driving the pair's performance and what the future may hold.

Fundamental

Overview of JPY USD currency pair performance this year.

The JPY USD currency pair has had a volatile year, with significant fluctuations in value. In January, the JPY reached its all-year high against the USD, but this was short-lived as the pair quickly dropped in value.
Throughout the year, the pair has been influenced by various factors, including global economic uncertainty, political tensions, and central bank policies.
As we approach the end of the year, many investors are closely watching the pair's movements to see if the JPY will reclaim its all-year high. Between October 2022, and January 2023, the Japanese Yen outperformed several other currency pairs, resulting in over a thousand pips move on pairs like EURJPY, GBPJPY, and 2000-plus pips on USDJPY. Considering that the BOJ has recently experienced a leadership change, and the JPY is at a pivotal zone on most charts, it seems a good time to analyze the charts for trading opportunities.

Technical analysis of JPY USD chart.

To determine if the JPY USD currency pair is ready to reclaim its all-year high, it's important to conduct a technical analysis of the chart.
Looking at the daily chart, we can see that the pair has been trading in a range between 105.00 and 107.00 for the past few weeks. However, the pair has recently broken above the 107.00 resistance level, which could indicate a bullish trend.
Additionally, the moving averages are starting to converge, which is another bullish signal. Overall, the technical analysis suggests that the JPY USD currency pair may be ready to reclaim its all-year high.
 

USDJPY

JPY USD Currency

USDJPY seems to be reacting from the trendline support on the daily already. However, as we can see from the chart based on the bearish alignment of the Moving averages, it confirms the possibility of a bearish movement. 
  •  Direction: Bearish 
  •  Target: 129.410 
  •  Invalidation: 135.470

CADJPY

 

CADJPY initially reacted to a demand zone even though the MAs are inclined in a bearish array. The break of structure, demand zone, and Fibonacci levels point to the possibility of price returning to the supply zone at the 200-Day MA before heading back down. 
  •  Direction: Bullish 
  •  Target: 100.060 
  •  Invalidation: 95.70 

EURJPY


I believe the price intends to react from a trendline resistance on the daily timeframe of EURJPY. The fact that the resistance trendline falls in line with the supply zone and 88% Fibonacci retracement zone gives me a reason to believe it would be a great point of entry for a sell order. 
  •  Direction: Bearish 
  •  Target: 145.430 
  •  Invalidation: 137.30 

GBPJPY

JPY USD Currency

GBPJPY looks very similar to EURJPY. I see the price heading towards and reacting from either of the two zones I have already marked out. Based on the alignment of the MAs, I will be opting for a sell order from either supply zone. 
  •  Direction: Bullish 
  •  Target: 161.000 
  •  Invalidation: 164.520

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.