The Rising USD/JPY?

With the support of the major crosses, we might see Usd/Jpy test the 100.00 market and continue to try to make new highs for this year. Looking at the crosses will also give a clear indication which direction the Usd/Jpy will go, please click on article for all the details.

In this chart we see the Usd/Jpy pulled back to a 23.6% retracement level after the rally from 89.70 to a high of 98.75. We might see the Usd/Jpy continue try to continue to make new highs with the support of the crosses.

The Usd/Jpy is be supported by upward movement on the Gbp/Jpy in this upward channel. We need to keep an eye on 141.60 level where the Gbp/Jpy found some resistance. If the Gbp/Jpy breaks through that level, this will be a signal for a higher Usd/Jpy rally.

Eur/Jpy is also being supported by a 38% retracement level and might continue to try to make new highs.

We need to keep an eye on the topside of the side ways channel Eur/Jpy was been in after the major sell of from 170.00 at 130.90 seen here on the daily Eur/Jpy chart.

Here on the Aud/Jpy daily chart we see it is in a wedge still with some room on the topside. We need to keep an eye on the top of the channel where might provide some resistance for the Aud/Jpy. If that breaks through that is also another signal that the Usd/Jpy will rally higher.

What does this all mean? With the support of the major crosses, we might see Usd/Jpy test the 100.00 market and continue to try to make new highs for this year. Looking at the crosses will also give a indication which direction the Usd/Jpy will go. We have an AUD interest rate decision coming up at 10:30 expected to cut 25 bases points, but there is rumors that RBA will be pressured to cut 50 because of what’s going on in the global economy. If something positive happens and rallies the Aud/Usd, this would put buying pressure on the Aud/Jpy and might break through that wedge and help support the Usd/Jpy rally.

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