JAPANESE YEN WEEKLY OUTLOOK FOR 12-16/07/ 2021

The Japanese Yen has been weak for a long time, making other currencies rally against it in the past few months. But things have started to change. Unlike other countries, Japan didn't close the border during the lockdown and also didn't give the vaccine on time as they wanted to carry out more tests on the vaccine.

It was reported that 26% of the population has been vaccinated with at least one dose and 15% have been fully vaccinated.

Here is this week forecast for JPY against other major currencies;

EURPY

EURJPY has been rising since the beginning of the year, making a 2 year high of 134 in June. Price hit a monthly resistance at 134 as it started dipping. A lower low lower high sequences have started to form as price dips, falling below 130 last week. A low of 129.621 was made last week as the price reacted from the April support Zone. Price is currently trading at 130.700 with more downward potential.

Price was rejected from the resistance at 132 last week and as long as the price stays below the 132 resistance, more downside is expected.

A break above 132.00 will see the price rally back to 134 or higher.

GBPJPY

GBPJPY went slightly above 156.00 in May. Price started inching downward after the 156.00 high was made. It made its first lower high at 155.300 in June before the price crashed to 151.480. Another lower high was made at 154.800, which sent the price to 150.667 last week.

GBPJPY is making a series of lower highs and lower lows as the price failed to reach the 156 recent high. The lower low and lower high sequences might be the start of a new trend on this pair. Although there is still support at 149 to watch out for.

A break above 154.00 will see the price rally to 156 or higher and a break below 150 will see the price go to 149 or lower.

With the increase in the volume of sellers on this pair, a crash is imminent.

CADJPY

CADJPY has also created lower high and lower low sequences. Price has been rejected from the 90.00 resistance level and a new low has been made. Price is currently reacting from the demand at 87.000 as it got rejected on Friday. Buyers' failure to push price back up to the 90.00 resistance level or beyond will see this pair fall below 87.00.

AUDJPY

AUDJPY has been moving sideways for a long time unlike other pairs in this currency group. No new high has been made ever since the price got to 85.500 in early March. It has been ranging since then and the price has not broken below 82.000 until last week. A low of 81.320 was made last week and the price is currently reacting from the 200-day MA. Failure to hold the price back in the range will result in further downward movement on this pair.

80.000 is the next support level on this pair if the price fails to keep ranging.

NZDJPY

Just like AUDJPY, NZDJPY has been in a consolidation state. After reaching a high of 80.000, the price hasn't been able to hold. Price is still within the range-bound as the support at 75.000 hasn't been broken

USDJPY

Due to the recent USD strength, USDJPY has reached a high of 111.658. Price failed to hold at this level as it crashed back to 110 a few days later. Further downside is expected on this pair as the price failed to hold at the 111.000 high.

CHFJPY

CHFJPY is currently trading in a sideways movement after the price fell from the 122.500 high. A massive crash from 122 to below 120 has seen a range formed between 121 and 118.

A break above 121 will see the price rally back to 122 or higher but failure to do so will see further sideways movement or price fall beyond 118.

CONCLUSION

According to the Commitment Traders Report (COT) that was published on Friday, non-commercials have started building their long position on JPY. Also, there will be a BOJ (Bank of Japan) Outlook Report this coming Friday and it's going to be high-impact news on the currency.