At least for the time being

Yen weakness has been a key theme in the FX space over the past few weeks but there is a sense of a bit of a breather over the past couple of days, and that is also being confirmed by the technicals especially when you drill down to the near-term chart.

Looking at CAD/JPY:

CAD/JPY H1 22-10

The pair fell back below its 100-hour moving average (red line) yesterday as sellers seized back some near-term control, before buyers stepped in to defend the 200-hour moving average (blue line) at the lows.

The bounce off said level though is falling short today of cracking back above the 100-hour moving average, so there is a tug of war taking place in terms of price action.

The two key near-term levels rest at 92.00 and 92.46 currently, and eventually something has got to give. That may be what sparks the next short-term directional move for the pair, despite the bigger picture outlook still somewhat favouring buyers.

Elsewhere, AUD/JPY and GBP/JPY are also two other pairs caught up in a similar situation as price action falls back to trade in between the key hourly moving averages:

AUD/JPY H1 22-10
GBP/JPY H1 22-10

That signifies a loss in upside momentum in general for yen pairs and if there is a subsequent break below the respective 200-hour moving averages across multiple charts, there might be scope for a deeper pullback across the board.

On the flip side, a push back above the respective 100-hour moving averages may give buyers more impetus once again to retest key levels on the weekly charts as outlined earlier in the week here.