The Japanese yen continues to lag across global FX markets, with most major yen crosses extending their broader uptrends into mid-December. Although short-term dips have appeared, the underlying technical structure for USD/JPY, CHF/JPY, and AUD/JPY remains supportive. Favourable seasonality, steady demand for higher-yielding currencies, and persistent yen weakness all help reinforce the bullish backdrop — though several crosses are now trading close to levels where volatility can increase.

Technical Setups for Key Yen Crosses

USD/JPY Technical Analysis

USD/JPY extended its pullback for a second session, yet Thursday’s recovery produced a clear bullish hammer on the daily chart. Price found strong support at the 155.00 area — a level closely watched during prior intervention risks — and the rejection from this zone strengthens the near-term bullish outlook.

On the 1-hour chart, selling pressure increased into the decline, but the highest intraday volume occurred at the cycle low, where buyers stepped in aggressively. This aligns well with the reversal wick on the daily candle and supports a constructive short-term view.

Traders may look for dips within Thursday’s range, anticipating a potential move back toward 156. However, because the US dollar often softens in the second half of December, positioning should remain flexible.

CHF/JPY Technical Analysis

CHF/JPY continues to push higher in a relentless uptrend, with the Swiss franc approaching a new record high against the yen. The pair is on track for its fourth straight daily gain, supported by strong momentum and historically bullish December seasonality.

With trend strength firmly intact, buyers may continue to target the 200.00 level. Whether price reaches this milestone by year-end is uncertain, but the seasonal pattern suggests continued upside pressure.

AUD/JPY Technical Analysis

AUD/JPY — another pair that typically performs well in December — has paused beneath the 2008 high, triggering a short-term pullback. Momentum has temporarily faded, and the charts hint at a minor retracement before the broader uptrend resumes.

On the 1-hour timeframe, price has formed a double top around 103.78 while intraday volumes declined into Thursday’s high, reflecting loss of bullish pressure. As long as price stays above the high-volume node at 103.17, buyers may attempt to reclaim the 103.8 area.

However, a deeper correction into 102.85 — or even 102.50 — cannot be ruled out before fresh demand emerges.

Market Outlook

Yen weakness remains the dominant theme across FX markets, but with several crosses now testing major resistance levels, volatility could increase in the second half of December. USD/JPY, CHF/JPY and AUD/JPY all maintain bullish structures, though traders may prefer tactical entries as momentum becomes stretched.