Japanese Yen Outlook: USD/JPY, GBP/JPY, AUD/JPY Setups
By Matt Simpson | Published on September 30, 2026
Overview
The article discusses the current technical outlook for three major currency pairs involving the Japanese Yen: USD/JPY, GBP/JPY, and AUD/JPY. It highlights mixed signals across these pairs, with USD/JPY and GBP/JPY showing signs of stabilization after recent declines, while AUD/JPY appears more vulnerable.
USD/JPY Technical Analysis
The USD/JPY pair has recently formed a bearish engulfing pattern, suggesting a potential near-term top. However, subsequent price action indicates that the pair may recover some of its losses. Key support levels are identified at 156 and the May low of 155.03, with resistance from the 200-day and 50-day EMAs. Traders are advised to wait for a clearer signal before entering positions, particularly looking for a lower high relative to the recent peak above 158.
GBP/JPY Technical Analysis
For GBP/JPY, a bullish outside day has formed, hinting at a potential swing low. This pattern is supported by the proximity of the monthly S2 pivot. The pair has stalled just below the weekly pivot point, suggesting a possible pullback. Traders may look for buying opportunities on dips, particularly if prices hold above 206.85, with upside targets at the April low of 209.64 and the 210 handle.
AUD/JPY Technical Analysis
The AUD/JPY pair is showing signs of weakness, with a second consecutive weekly decline and a potential larger topping pattern. Currently, it is testing support at the 50-week EMA, but bearish momentum suggests a risk of breaking the March low. Traders are advised to consider fading any rallies, with downside targets at 108 and 107 if the March low is breached.
Conclusion
The article concludes that while USD/JPY and GBP/JPY are stabilizing, AUD/JPY remains under pressure. Traders should monitor these pairs closely for potential trading opportunities based on the outlined technical setups.