Bank of America on the yen
Bank of America Global Research discusses the technical outlook for 5 JPY crosses.
"GBP/JPY is testing multiple time frame resistances including the top of a channel on its daily chart, the 1Q18 peak and a trend line on the monthly chart that began in 2008. This is all in the 155-156 area
AUD/JPY is testing resistance at the 200wk SMA (84.75), has some bearish divergence and bearishly broke its trend line from the 1Q20 COVID-19 low," BofA notes.
"CHF/JPYhas two sell signals this week from the TD Sequential indicator on its weekly chart. In the past, price went down one week later 73% of the time and down eight weeks later 69% of the time
CAD/JPY has a three peaked price / RSI / MACD bearish divergence while it faces a historically relevant pivot level in the 91s.
USD/JPYcontinues to battle 110 and the YTD highs at 110.97 that produced a false break and bearish reversal. If MACD continues to roll over to a bearish cross it may see the top of the cloud at 106.70 before ripping to 112.40. Otherwise a breakout points to 112.40 and 114.20," BofA adds.
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