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It May Be Time To Buy The Yen

ByJoe Perry
Published 09/11/2019, 01:03 AM
Updated 07/09/2023, 06:31 AM
AUD/JPY
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Many of the yen pairs have a had a nice rally off their lows from August 26th. On that date, we discussed how a false breakdown in many of the Yen pairs could lead to a 60 handles rally in S&Ps. The false breakdown was confirmed with the recent 5 day move higher in many of the Yen pairs, which helped to catapult XXX/JPY through triangle resistance to new highs, not seen in many pairs in over a month.

USD/Yen Daily Chart

Source: Tradingview, FOREX.com

Here is the question now:

Is it time to sell yen pairs (or buy yen)? And if so, in which pair?

AUD/JPY looks like it may be a good candidate to go short if one wants to take a shot at buying yen, which is currently trading at 73.74.

AUD/Yen Daily Chart

Source: Tradingview, FOREX.com

  • The pair is currently up against downward sloping trendline resistance which goes back to April 19th near 73.80.

  • AUD/JPY is running into horizontal resistance from the low on June 18th near 74.00

  • The pair is near the 38.2% retracement level from the April 19th highs to the August 26th lows at 74.10.

    • Because of the potential strong resistance above, one may consider shorting AUD/JPY and placing a stop above the resistance area.

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