[ProfileOou]

USDJPY


• USDJPY closed above the 91.73 resistance level and is likely to rise further in the short term towards 93.09 and possibly 93.55 which was the March 19th low.

• Again the setup here remains bullish at least in the short term with a good hold of the 76.4% Fibonacci retracement against the Jan lows. A rise in U.S. long end yields continues to suggest a higher USDJPY in the short term

EURJPY


• EURJPY closed above the double bottom neckline yesterday opening the way for further gains up to 137.50

• Given the bounce in USDJPY and the uptrend still in place in EURUSD, we would not be surprised to see short term gains on EURJPY

NZDJPY


Trend support is still in place and NZDJPY is now pushing against the highs at 65.90. A rally through there
would suggest further gains still towards the reverse head and shoulders target of 67.73 which effectively
converges with the longer term resistance (see chart below).

NZDJPY


Longer term resistance comes in at 67.50/75 area


GBPJPY


• Approaching good support around 146.70 – 147.20 where the medium term channel base converges with the horizontal support levels.

• While GBP remains weak generally, we would expect this support area to hold, especially given the developments we are seeing on other JPY crosses and also on UK yields.

If indeed JPY crosses are moving in line with yields then is appears as though GBPJPY may need to catch
up in the short term…

GBPJPY and UK 10 year yields


• UK 10 year yields moved before GBPJPY in June and July this year and also in early August as highlighted above.
• If yields are giving a leading indication then GBPJPY is likely to bounce in the short term acoording to this overlay.