The Political Hurricane Meets the Yen Tornado

Just another Monday in the land of sushi and forex—except, instead of delicate sashimi slices, the Japanese Yen (JPY) is slicing through the market with more drama than a sumo wrestling final. The Yen opened the week with some pretty wild political turbulence, the kind that makes you want to grab some popcorn and refresh the news every five minutes. But here’s where the real action unfolds: beneath the headlines of Japan’s government intrigue lies an exciting forex fiesta—the Yen’s breakout against the GBP, USD, and EUR. Today, we’re diving into the kind of underground moves that separate the amateurs from the experts. Put on your ninja headbands; it’s about to get very Forex-nical!

The “Not-so-Subtle” Breakout Show: USD/JPY Plays Catch Up

While the USD/JPY has been doing its best to recover like that friend who just needs a second cup of coffee to feel alive, the breakout setups in GBP/JPY and EUR/JPY are where the cleaner moves can be found. Yeah, the USD/JPY made headlines after breaking through 151.95 last week (cheers and confetti), only to pull back right to the 200-day moving average—because nothing says “I’m still bullish” quite like clinging to a moving average for dear life.

But here’s the kicker: as the Dollar’s bull run started losing a bit of steam (imagine running a marathon only to realize your shoe is untied), there were juicier opportunities elsewhere—particularly in the GBP/JPY and EUR/JPY. These pairs were making strides like a well-trained Olympic sprinter. And wouldn’t you know it, the forecasts saw this coming like a predictable plot twist in a soap opera.

EUR/JPY: The Ascending Triangle That Could (And Did)

Picture this: last week, EUR/JPY had this perfect ascending triangle formation on the daily chart—something so textbook that even forex novices were nodding with appreciation. Resistance held at 163.50, a level that, like a pesky mosquito, just wouldn’t go away. This wasn’t just any level, though. It was a confluent area—the 50% retracement from July’s big move, plus the late-September swing high. Yes, the stars were aligning here, and not in a cheesy horoscope kind of way.

Eventually, resistance didn’t stand a chance. By Wednesday, bulls marched in—probably to the tune of a very triumphant soundtrack—and price shot right up to the 200-day moving average. Even a pullback couldn’t stop the momentum, with support at the 163.90 level keeping the trend intact like a security guard at an exclusive club. The bulls didn’t just stop there; they pressed right through and were ready to take on the 166.00 mark. (Though they still haven’t gotten their invitation to the VIP room just yet—that’s at 166.25.)

GBP/JPY: Grinding Its Way to Glory

Ah, GBP/JPY—the pair that’s been teasing the psychological 200.00 level like an experienced poker player teasing their hand. Before we get there, let’s rewind a bit. GBP/JPY had been knocking its head against 195.66, the 23.6% retracement of the 2023-2024 major move, for weeks. It’s like watching a cat try to figure out how to open a door—you know it’s gonna happen eventually, but the process is amusing.

Finally, last Wednesday, the pair exploded through resistance, likely fueled by JPY weakness across the board against the USD, GBP, and EUR. The ensuing breakout wasn’t just clean—it was chef’s-kiss level smooth, pushing GBP/JPY up to the 197.42 area by the end of last week.

The fast run eventually cooled off, but even that retracement found solid support—resistance turned support at around 197.79, holding like an immovable rock. Bullish traders now have their eyes set on breaking that 200.00 psychological barrier—and let’s face it, they’re pretty close. Just don’t be surprised if it needs a few more nudges before it finally crumbles.

Insider Tactics: Ninja Moves and Hidden Setups

So, what does all this mean for the forex-savvy ninja reading this? Let’s break it down into some real-life application and strategy:

1. Resistance Turned Support Levels Are Key: In both EUR/JPY and GBP/JPY, we’ve seen that resistance turning into support is the game-changer. When a level gets tested as resistance multiple times and eventually breaks, watch for it to act as support. It’s the market equivalent of proving itself worthy of a title fight. Keep an eye on 163.90 for EUR/JPY and 197.79 for GBP/JPY.
2. Patience Is Your Superpower: The ascending triangle in EUR/JPY and GBP/JPY’s ongoing grind have one thing in common—they needed time. Don’t chase a move that’s already out of the gate; wait for pullbacks to key support areas. Forex rewards patience more often than brute force (unless you’re USD/JPY clinging to a moving average).
3. GBP/JPY’s Psychological Levels: These numbers ending in ‘00’ are like magnets—they attract price action but also tend to repel it a bit before ultimately breaking. If you’re looking for GBP/JPY to reach 200.00, consider waiting for a clean break before you dive in.

The Takeaway: Hidden Opportunities and Elite Tactics

As usual, the Japanese Yen is serving up excitement, tension, and no small amount of opportunity—if you know where to look. The Yen pairs have been thriving on breakout moves and building momentum, with GBP/JPY and EUR/JPY leading the charge. This isn’t just another day in forex; it’s a day to dig into setups that are already showing signs of life—signs the market hasn’t quite caught on to yet.

If you’re interested in stepping up your trading game, check out our Forex Education section at StarseedFX Forex Education. We’ve got the latest in-depth strategies and analyses that can help you stay ahead of the curve and recognize setups just like these before the broader market catches on.

Bullish Sentiments and a Call to Action

The Yen is doing its thing—creating the kind of price action that makes the forex market a playground for those in the know. Whether you’re tracking the grinding progress of GBP/JPY or the confident strides of EUR/JPY, opportunities are unfolding. Stay patient, pick your spots, and when the time comes, don’t be afraid to make your move.

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Image Credits: Cover image at the top is AI-generated