We can observe the strengthening of the Japanese yen in the morning of the new European session. The USDJPY and EURJPY currency pairs are down around 0.7%. Declines in the dollar against the yen can be explained in part by a pullback in US bond yields. The yield on the 10-year bond fell to 4.385%. However, the magnitude of the movement on the JPY is greater than on other pairs, while at this point no other information has emerged that can explain the strength of the Japanese currency.
Looking technically at the USDJPY chart, there has been an upward trend for quite some time. Currently, after a correction, the quotes have reached support at 149.60, which stems from the lower limit of the local 1:1 system (red rectangles). This is the first place where demand can become active. However, if this level is negated, the discount could extend towards 148.00, where the lower limit of the broader 1:1 geometry falls. Only the negation of the larger pattern could, according to the Overbalance methodology, lead to a change in the trend to a downtrend.
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Source: xStation
Looking at the EURJPY chart, on the other hand, the quotes are just testing the support at 162.46, which stems from the local 1:1 measure (red rectangles). If the downward movement deepens, the broader 1:1 geometry - the 162.10 level - falls slightly lower. Its break according to the Overbalance methodology could lead to more downward trend change.
Source: xStation
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