Japanese Yen Weekly Technical Outlook: Bull Trend Marches On

Talking Points:

The Japanese Yen was the best performing major currency last week, extending its run as the best performer in October.

– Friday’s price action among the JPY-crosses suggests exhaustion in the short-term, but weekly charts continue to point towards gains.

Retail traders remain net-short the Japanese Yen, despite the whipsaw price action at the end of last week.

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

Technical Forecast for the Japanese Yen: Bullish

Another week of heightened volatility in global bond and equity markets proved to be fertile ground for another round of gains by the Japanese Yen. Spurred on by fresh concerns over the Brexit process and the Italian budget saga, GBP/JPY and EUR/JPY were two of the three worst performers, losing -2.45% and -1.53% respectively. More pressure on emerging markets amid trade war concerns weighed on AUD/JPY and NZD/JPY, which sank by -0.97% and -1.96% each.

While price action on Friday produced a sharp reversal in higher yielding currencies and risk-correlated assets, thus yielding a selloff in the Yen, the facts on the ground

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/10/28/Japanese-Yen-Weekly-Technical-Outlook-Bull-Trend-Marches-On.html