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But – if we do see the BoJ hold policy, the topside of CAD/JPY could be very interesting after the Bank of Canada’s rate hike last week. That’s actually similar to a longer-term formation that had built last year that resolved in a very bullish way. That fresh high led to a pullback, which took on the form of a bull pennant. GBP/JPY Four-Hour Price ChartĬhart prepared by James Stanley GBP/JPY on Tradingview CAD/JPY Pennant ResolutionĬAD/JPY is battling around the 14-year-high, which was set in early-June but, to this date, buyers haven’t been able to add an exclamation point to the matter. The 160.00 psychological level is currently helping to mark the monthly low. In GBP/JPY, that level is 165 and it’s already very nearby current price, but a breach below that opens the door for a deeper bearish move. Similar to EUR/JPY above, there’s a major psychological level sitting just underneath price action. GBP/JPY Daily ChartĬhart prepared by James Stanley GBP /JPY on Tradingview

Shorter-term, however, there’s a bearish trendline emanating from that second failed break that’s currently helping to hold today’s high. And if that formation fills in, there could be a massive move to follow as there’s more than 1200 pips from the neckline to the top of that formation. Longer-term, there’s a double top in here after price twice failed to break-through Fibonacci resistance at 168.06. EUR/JPY Four-Hour ChartĬhart prepared by James Stanley EUR/JPY on Tradingview GBP/JPY Going down to the four-hour chart shows a key waypoint along the way: There’s a support zone that runs from 139.56-140.00, and a breach-below that re-opens the door for sellers. Now that the resistance reaction is playing-in off of the trendline projection, the big question is whether sellers can respond.

EUR/JPY Daily Price ChartĬhart prepared by James Stanley EUR /JPY on Tradingview EUR/JPY Shorter-Term Prices have since pulled back, but are now finding resistance from a prior support trendline, while also testing above the 140.00 psychological level. Prices fell through the bottom of a rising wedge, which is often followed with the aim of bearish reversals. In EUR/JPY, the pair is climbing after giving tones of breakdown earlier in the month of July. USD/JPY Four-Hour ChartĬhart prepared by James Stanley USD/JPY on Tradingview EUR/JPY – Resistance at Prior Support There’s also a shorter-term spot taken from prior resistance, plotted from 136.45-137.00 that remains of interest for those looking to treat the trend a bit more aggressively. USD/JPY Weekly Price ChartĬhart prepared by James Stanley USD/JPY on Tradingview USD/JPY Shorter-TermĪt this point, there remains support potential around the 135.00 handle. And this could be an element of a market making new significant moves with a dearth of historical data available traders are shying away as price approaches the next major psychological level, such as we saw around 130 or 135, only for prices to pullback before the trend-side move continues. There’s a hastening of this theme that’s been getting priced-in and notice how each progressive psychological level identified, save for the 120 level, elicited a pause in the move-higher. What’s happened over the past four months, however, is darn near parabolic. The pair came into the month of March at the 115.00 handle which, at the time, was impressive as this was near five-year-highs. Going shorter-term, we can really see that bullish move heating up in USD/JPY since March. USD/JPY Monthly ChartĬhart prepared by James Stanley USD/JPY on Tradingview At this point, resistance has played-in on USD/JPY just ahead of a test of the 140.00 psychological level, which hasn’t been traded at since August of 1998. And with the FOMC set to continue lifting rates next week, that deviation may have the wherewithal to continue growing in USD/JPY. And with inflation at just 2.1% in the most recent data, there’s not the same level of motivation to tighten policy as what’s being seen elsewhere, such as the US.īut, that glaring divergence has already allowed for a massive move in the USD/JPY pair. The Bank of Japan is expected to maintain policy while pledging to keep rates at current levels or lower. And while the ECB is expected to lift rates in the effort of starting to fight inflation, there aren’t such expectations around the BoJ. This week brings a Bank of Japan meeting just hours ahead of the European Central Bank’s rate decision.