Japanese Yen Weekly Technical Forecast: Reversals Break Bull Trend

Talking Points:

The Japanese Yen finished October as the best performing currencies, but its start to November has been inauspicious, to say the least.

– The technical outlook for the Yen has been clouded after near-term price action has seen momentum indicators start to turn less amicable.

– Changes in retail trader positioning seem to indicate that Japanese Yen weakness may be on the short-term horizon.

See our long-term forecasts for the Japanese Yen and other major currencies with the DailyFX Trading Guides.

Technical Forecast for the Japanese Yen: Neutral

The Japanese Yen finished October as the top performing major currency, gaining at least +2% versus six of the other seven major currencies last month, including gains of greater than +3% against two of them (EUR/JPY -3.17% and EUR/CHF -3.31%). The fundamental conditions that have catered to Yen strength – the aggregate impact of tightening monetary policy, mismanaged fiscal policy (rising deficits), trade wars, high energy costs, and rising inflation – continue to rear their ugly heads.

But the rebalancing effects wrought by a new trading month meant that the Yen was sold off sharply in the

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/11/04/Japanese-Yen-Weekly-Technical-Outlook-Reversals-Break-Bull-Trend.html