Yen Pairs EURJPY & AUDJPY Break Out to Post 10-month High Settlements

Led by AUDJPY & EURJPY the yen pairs rallied sharply today to break above previous resistance and remind traders that “the good old days” of sustained price movement and healthy ranges for the complex may no longer be a thing of the past. Today’s rally kicked off at the tail end of the London morning session on little reported news, yet plenty of speculation on possible central bank intervention, and continued higher throughout the European and U.S. sessions leaving AUDJPY nearly 50 pips above the previous 8-month high from February – see Figure 1. 
Figure 1

The rally leaves EURJPY in a position to shift its Monthly trend higher for the first time in nearly 2 years – see Figure 2.

Figure 2

A natural upside target for AUDJPY would be 90.00 which is also the approximate 66% retracement of the 2008 panic, while a likely technical target for EURJPY over the coming months would be 126.66 which is a 33% retracement of the 2008-2010 bear market.       

Jay Norris is host of  Live Market Exercise at Clovernest.com and the author of Mastering the Currency Market, McGraw-Hill, 2009. 

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