The USD/JPY made a second consecutive unusually strong weekly rise last week, closing near its high at its highest closing price seen in over 6 years. These are very bullish signs, with the Japanese Yen showing the greatest weakness of all major currencies putting this pair in focus right now. I made a good call last week seeing this pair as a buy.
There are two reasons for bulls to be cautious here: firstly, although the Japanese Yen is clearly the weakest currency, the US Dollar is not showing short-term strength, so it may be better to trade Yen currency crosses long over the coming week, such as AUD/JPY as the Aussie is showing strong momentum. Secondly, this currency pair has reached an area of resistance stretching from about 119.15 to the big round number overhead at 120.00, which may slow or even halt its advance.
There are two reasons for bulls to be cautious here: firstly, although the Japanese Yen is clearly the weakest currency, the US Dollar is not showing short-term strength, so it may be better to trade Yen currency crosses long over the coming week, such as AUD/JPY as the Aussie is showing strong momentum. Secondly, this currency pair has reached an area of resistance stretching from about 119.15 to the big round number overhead at 120.00, which may slow or even halt its advance.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.