Rough week for the yen

The yen was (by far) the laggard this week.

USD/JPY has broken out above 81.00 but the technical picture is less definitive in other pairs, including EUR/JPY, GBP/JPY and AUD/JPY. The one I want to focus on CAD/JPY which is the clearest representations of what has happened this week.

In essence, most of the moves have simply erased the prior week.

It will be interesting to see what happens next week. Yen crosses have rallied this week despite the worries in Europe and stock markets. If risk sentiment rebounds (and it has to at some point), the breakouts in these pairs could spark a fresh leg higher in all the yen crosses.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

6 Comments

  1. Hey, the AUD finally broke below 1.03! Adam, you should have a woo-hoo video for such events, like Gerry has! Unfortunately I am not short this pair on this leg down ;-(

  2. the commodity currencies are dropping

  3. Adam, another spark for YEN crossed !

  4. I know your habit on predicting in volatile FX market, but it’s nature to appeal for polling. So please your guess about the resistant level for GBPJPY, 129.6 or 129.2?

  5. Well, I nailed it last night on the pullback to 1.2830 but no way do I think 129.60 is breaking today.

  6. Thanks Adam.

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