Technical Update - EURJPY, AUDJPY, GBPJPY and NZDJPY

EURJPY

The pair continues to oscillate within a descending trend-channel formation on daily chart and after breaking below an intermediate horizontal support near 131.00 mark, the pair is now trading close to the lower trend-line support of the channel, near 130.00 psychological mark. Should the pair extend its weakness below 130.00 level support, marking the descending channel break-down, it could immediately slide to 129.00 round figure mark intermediate support before heading lower towards retesting March 2015 daily closing lows support near 127.20-127.00 area. Meanwhile, a bounce from the current support levels might now confront immediate resistance near 131.00 mark. This is closely followed by another strong resistance near 131.80-132.00 region. Only a sustained strength above 131.00 mark resistance and a subsequent move above 132.00 mark might negate possibilities of any further depreciating move, thus paving way for extension of the near-term recovery.

AUDJPY

Extending its bounce from the lower trend-line support of a short-term ascending trend-channel formation on daily chart, the pair has now trading comfortably above 100-day SMA for the first time since July 2015. From current levels, the pair seems to continue trending higher towards testing its immediate horizontal resistance near 89.75-89.80 area. Should the ongoing momentum assist the pair to surpass this horizontal resistance, the pair then might be aiming towards testing its next major resistance near 91.80-92.00 region, marking the upper trend-line resistance of the channel. On the downside, 88.40-30 area now seems to have emerged as immediate support for the pair. This is closely followed by a very important support confluence near 87.70-60 region, comprising of 100-day SMA and the lower trend-line support of the channel. Only a decisive weakness back below this important support confluence might negate expectations of any further near-term recovery for the pair.

GBPJPY

The pair's bounce from the lower trend-line support of an ascending trend-channel formation on daily chart and a subsequent move within a short-term ascending trend-channel failed to lift the pair beyond 188.80-189.00 mark strong resistance. The pair subsequently weakened below the short-term ascending trend-channel support and now seems to be headed back towards retesting 183.20-183.00 area support, marking the lower trend-line support of the ascending trend-channel held since Oct. 2014. Sustained weakness below 183.00 mark support is likely to drag the pair immediately towards retesting 180.60-50 important support marked by lows tested in Sept.-Oct. 2015. Meanwhile on the upside, 185.00 round figure mark could provide some immediate resistance for the pair, but major upside resistance is now pegged near 186.00-186.20 region, representing the short-term ascending trend-channel support break-point, which now seems to act as immediate strong resistance for the pair.

NZDJPY

Following its recovery from the lowest level since Jan. 2013, tested in August 2015, and a subsequent strength above 100-day SMA for the first time since May 2015, the pair seems to consolidate between 50% and 38.2% Fib. retracement level of Apr. to Aug. down-leg. The lower end of the trading range support near 79.80-70 region also coincides with 100-day SMA and 50-day SMA. Till the time it continues to hold above this important support confluence, the pair seems to make a fresh attempt to retest 50% Fib. retracement level resistance, near 82.30 level, which if conquered opens room for further recovery towards 61.8% Fib. retracement level resistance, near 84.50-60 area. Alternatively, should the pair fail to hold an important support confluence near 79.80-70 area, its is likely to drop back to an intermediate support near 78.50 level before aiming towards its next major support near 75.60-50 area.

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