Japanese Yen in Focus: Technical Outlook for Q2

A critical juncture for the Japanese yen against major currencies: USD/JPY, EUR/JPY, GBP/JPY technical outlook for Q2 2024.

As the second quarter of 2024 unfolds, traders closely monitor the Japanese yen’s technical outlook against major currencies. The yen’s performance against the US dollar (USD/JPY), euro (EUR/JPY), and British pound (GBP/JPY) is at a critical juncture, with various factors influencing their trajectories.

USD/JPY Technical Outlook

The USD/JPY pair experienced significant gains in the first quarter of 2024, rising over 7% and nearing key resistance levels around 152.00 by March 22. This psychological threshold presents a crucial point for traders to observe, with a potential breakout signaling further upside towards 154.00. However, the Japanese government’s intervention to support the yen could limit prolonged bullish momentum. In case of a reversal, support levels lie around 146.50, followed by 145.00 and 143.50, with deeper retracement targets at 140.45, 137.00, and 133.25.

Yen in Focus: Technical Outlook for Q2

EUR/JPY Technical Outlook

Similarly, EUR/JPY witnessed notable gains, briefly surpassing 165.00 in the first quarter, reflecting bullish sentiment. Yet, sustained advancement beyond this level may face resistance due to potential Japanese authorities’ interventions. Should the pair breach 165.00 decisively, targets include 168.75 and even 170.00. Conversely, a downward shift could find support near 159.70, with further levels at 153.10 and 151.60, followed by 148.70.

GBP/JPY Technical Outlook

In the first quarter, GBP/JPY exhibited substantial strength, reaching heights not seen since August 2015, surpassing the 190.00 mark. However, expectations of a rate cut from the Bank of England and potential normalization by the Bank of Japan could influence a medium-term downward trajectory. Support levels are around 189.00, 184.75, and 178.00, with resistance at 193.50 and further targets near 196.00.

As traders navigate the second quarter, these technical insights provide valuable guidance amidst evolving market conditions. While bullish momentum persists across these pairs, factors such as central bank policies and market sentiment remain critical in determining their future trajectories.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified professional before making any investment decisions.

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