CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

Japanese Yen Technical Analysis: USD/JPY, GBP/JPY, EUR/JPY

Article By: ,  Sr. Strategist
Today 8:54 PM

Japanese Yen Talking Points:

  • Japanese Yen strength showed against the U.S. Dollar in the aftermath of this morning’s U.S. CPI report.
  • While questions remain around the Fed’s ability to cut rates this year, both Europe and the U.K. could drive bearish fundamental backdrops, making the prospect of carry unwind in GBP/JPY and EUR/JPY as more attractive concepts.
  • I look into these pairs each week in the Tuesday webinar, and you’re welcome to join: Click here for registration information.

USD/JPY Support Break

 

The U.S. Dollar showed a move of weakness around the U.S. CPI print this morning, and while DXY has bounced back and the EUR/USD sell-off has caught another shot-in-the-arm, USD/JPY is holding relatively close to the morning’s lows.

There’s also the breach of a support zone that had showed as prior resistance, taken from the 76.4 and 78.6% Fibonacci retracements of the July-September sell-off. This zone had previously helped to hold resistance in November, but more recently it had helped to hold support over the past two weeks, until this morning’s breach down to a lower-low.

 

USD/JPY Daily Price Chart

Chart prepared by James Stanley, USD/JPY on Tradingview

USD/JPY Four-Hour

 

On a shorter-term basis we can see where this morning’s sell-off brought upon a fresh 2025 low in the pair; but the bounce from that has, so far, held resistance at the bottom of the support zone noted above.

For overhead resistance, there’s a prior swing-low at 156.91 and the top of the Fibonacci zone at 157.17. And for next support below the 156.00 handle, it’s the 155.00 psychological level that looms large.

 

USD/JPY Four-Hour Chart

Chart prepared by James Stanley, USD/JPY on Tradingview

 

GBP/JPY

 

It’s been a slippery start to the year for the British Pound and I had looked at GBP/JPY in the weekly forecast, highlighting a bearish backdrop as prices had started to push below a long-term zone. Monday saw another spill in GBP/JPY and the pair made a fast push down to the 190.00 handle before catching a sizable bounce. Resistance held overnight at 193.00 and sellers have went back for another run, but chasing this at this point could be a challenge.

From the weekly chart below, we can see a longer-term trend that’s come more and more into question, as shown by lower-highs over the past six months. But if the pair gives up the 190.00 level, the door could soon open to breakdown scenarios.

 

GBP/JPY Weekly Chart

Chart prepared by James Stanley, GBP/JPY on Tradingview

 

GBP/JPY Four-Hour

 

Given how quickly the pair has moved off of that 193.00 level, chasing could be challenging. But, there’s also context for a lower-high around the 192.40 level; and if that doesn’t come into the picture, the 190.81 Fibonacci level could potential be used to work with breakdown scenarios into the 190.00 psychological level.

 

GBP/JPY Four-Hour Price Chart

Chart prepared by James Stanley, GBP/JPY on Tradingview

 

EUR/JPY

 

EUR/JPY is currently within a symmetrical triangle formation and earlier this week, it was around the 160.00 level that had held the lows after bears attempted to continue the sell-off that started after resistance at the 165.00 level around the end of 2024.

Similar to GBP/JPY above, that can be a tough move to chase. But the weekly chart shows the bigger-picture where, if we do see a notable sell-off and a breach of recent congestion, a longer-term move could come into play.

 

EUR/JPY Weekly Chart

Chart prepared by James Stanley, EUR/JPY on Tradingview

 

EUR/JPY Four-Hour

 

From the four-hour chart of EUR/JPY, we can see another Fibonacci level coming into play at 160.90 to help hold the lows so far today. This is quite near the earlier week swing low and this could, again, be a challenging place to chase price-lower. But – it does highlight lower-high resistance potential at 161.44 or 162.04, both of which could keep the door open for a 160.00 test.

Or – if no pullback shows, a breach of 160.00 opens the door to bigger picture breakdown potential, with the next notable level-lower the Fibonacci level at 158.66.

 

EUR/JPY Four-Hour Chart

Chart prepared by James Stanley, EUR/JPY on Tradingview

 

--- written by James Stanley, Senior Strategist

 

Japanese Yen Talking Points:

  • Japanese Yen strength showed against the U.S. Dollar in the aftermath of this morning’s U.S. CPI report.
  • While questions remain around the Fed’s ability to cut rates this year, both Europe and the U.K. could drive bearish fundamental backdrops, making the prospect of carry unwind in GBP/JPY and EUR/JPY as more attractive concepts.
  • I look into these pairs each week in the Tuesday webinar, and you’re welcome to join: Click here for registration information.

USD/JPY Support Break

 

The U.S. Dollar showed a move of weakness around the U.S. CPI print this morning, and while DXY has bounced back and the EUR/USD sell-off has caught another shot-in-the-arm, USD/JPY is holding relatively close to the morning’s lows.

There’s also the breach of a support zone that had showed as prior resistance, taken from the 76.4 and 78.6% Fibonacci retracements of the July-September sell-off. This zone had previously helped to hold resistance in November, but more recently it had helped to hold support over the past two weeks, until this morning’s breach down to a lower-low.

 

USD/JPY Daily Price Chart

Chart prepared by James Stanley, USD/JPY on Tradingview

 

USDJPY AD

 

USD/JPY Four-Hour

 

On a shorter-term basis we can see where this morning’s sell-off brought upon a fresh 2025 low in the pair; but the bounce from that has, so far, held resistance at the bottom of the support zone noted above.

For overhead resistance, there’s a prior swing-low at 156.91 and the top of the Fibonacci zone at 157.17. And for next support below the 156.00 handle, it’s the 155.00 psychological level that looms large.

 

USD/JPY Four-Hour Chart

Chart prepared by James Stanley, USD/JPY on Tradingview

 

GBP/JPY

 

It’s been a slippery start to the year for the British Pound and I had looked at GBP/JPY in the weekly forecast, highlighting a bearish backdrop as prices had started to push below a long-term zone. Monday saw another spill in GBP/JPY and the pair made a fast push down to the 190.00 handle before catching a sizable bounce. Resistance held overnight at 193.00 and sellers have went back for another run, but chasing this at this point could be a challenge.

From the weekly chart below, we can see a longer-term trend that’s come more and more into question, as shown by lower-highs over the past six months. But if the pair gives up the 190.00 level, the door could soon open to breakdown scenarios.

 

GBP/JPY Weekly Chart

Chart prepared by James Stanley, GBP/JPY on Tradingview

 

GBP/JPY Four-Hour

 

Given how quickly the pair has moved off of that 193.00 level, chasing could be challenging. But, there’s also context for a lower-high around the 192.40 level; and if that doesn’t come into the picture, the 190.81 Fibonacci level could potential be used to work with breakdown scenarios into the 190.00 psychological level.

 

GBP/JPY Four-Hour Price Chart

Chart prepared by James Stanley, GBP/JPY on Tradingview

 

EUR/JPY

 

EUR/JPY is currently within a symmetrical triangle formation and earlier this week, it was around the 160.00 level that had held the lows after bears attempted to continue the sell-off that started after resistance at the 165.00 level around the end of 2024.

Similar to GBP/JPY above, that can be a tough move to chase. But the weekly chart shows the bigger-picture where, if we do see a notable sell-off and a breach of recent congestion, a longer-term move could come into play.

 

EUR/JPY Weekly Chart

Chart prepared by James Stanley, EUR/JPY on Tradingview

 

EUR/JPY Four-Hour

 

From the four-hour chart of EUR/JPY, we can see another Fibonacci level coming into play at 160.90 to help hold the lows so far today. This is quite near the earlier week swing low and this could, again, be a challenging place to chase price-lower. But – it does highlight lower-high resistance potential at 161.44 or 162.04, both of which could keep the door open for a 160.00 test.

Or – if no pullback shows, a breach of 160.00 opens the door to bigger picture breakdown potential, with the next notable level-lower the Fibonacci level at 158.66.

 

EUR/JPY Four-Hour Chart

Chart prepared by James Stanley, EUR/JPY on Tradingview

 

--- written by James Stanley, Senior Strategist

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025