Summary of FX by SX Article
Title: AUD/JPY, EUR/JPY, GBP/JPY: The good, the cautious and the heavy
Author: David Scutt, Market Analyst
Date: 18/02/2026
Overview
The article discusses the current technical landscape of the yen crosses, specifically focusing on AUD/JPY, EUR/JPY, and GBP/JPY. It highlights the mixed signals present in the market, with AUD/JPY showing a bullish setup, EUR/JPY stabilizing, and GBP/JPY appearing heavy despite holding key support levels. The resilience of these pairs is under scrutiny as market conditions evolve.
Market Sentiment and Technical Analysis
Despite recent bearish reversal signals indicating potential shifts in momentum, buyers have returned to support the uptrends in these currency pairs. The article notes that the recovery in GBP/JPY is particularly noteworthy, even as concerns grow regarding potential rate cuts by the Bank of England due to disappointing economic data.
The analysis emphasizes that risk appetite is a significant factor influencing yen behavior, overshadowing traditional interest rate differentials. The prevailing sentiment suggests that until a clear breakdown occurs, the market remains biased towards upward movement.
GBP/JPY Analysis
GBP/JPY has faced challenges in generating a strong bounce after testing critical support levels. The article identifies 209.65 as a key resistance level that bulls need to overcome to restore confidence in the uptrend. Current indicators, such as RSI and MACD, suggest a lack of strong buying momentum, indicating potential risks of further declines.
EUR/JPY Analysis
In contrast, EUR/JPY shows a more promising outlook, having bounced off uptrend support convincingly. The article suggests that reclaiming the 50-day moving average and the 184.00 level could pave the way for a retest of previous highs. Positive momentum indicators indicate that downside risks are diminishing.
AUD/JPY Analysis
AUD/JPY has demonstrated resilience, with bulls stepping in to defend trend support. The article notes that if the pair can reclaim minor resistance at 109.66, it could lead to a continuation of the bullish trend. The overall structure remains supportive of dip-buying strategies.
Macro Risks and Geopolitical Tensions
The article concludes by addressing macroeconomic risks, particularly the potential impact of the Supreme Court's ruling on tariffs in the U.S. This ruling could create volatility in the market, affecting sentiment towards the yen. Additionally, ongoing geopolitical tensions, particularly involving Iran, add another layer of uncertainty, with the potential for significant market reactions depending on developments in this area.
Conclusion
Overall, the article presents a nuanced view of the yen crosses, highlighting the mixed signals and the importance of upcoming economic events and geopolitical developments in shaping market dynamics. Traders are advised to remain vigilant as the situation evolves.