USD/JPY Signal Update
Yesterday’s signals were not triggered and expired.
Today’s USD/JPY Signal
No signal is given today.
USD/JPY Analysis
Monday saw a sharp strengthening of the JPY, and then yesterday saw an almost equally sharp weakening. The level of 103.85 which had acted as support previously did not act as resistance effectively, so there was no opportunity to take a short trade off it.
We are still contained within the wide long-term bullish channel so the general outlook should be widely bullish. Unfortunately, there are no really good visible levels for long entries before we get down to 101.63, which is too far away to worry about today, therefore there is no signal.
The most interesting thing is that we are close to retesting the broken bullish trend line that was breached after Friday’s NFP data. If we get up there again at a level confluent with today’s R1 daily pivot level at 104.64, and the price action confirms, it might be good for a quick short. I am not giving that as a signal.
We also have a new bullish trend line below that could develop into a new channel.
There is likely to be some support at the key psychological number of 102.50. There is also a minor support level at 103.56.
Note that so far, every time we have got much above 105, there has been a sell-off.
There is no important news due today for the JPY. Concerning the USD, there are two news releases due at 1:30pm London time (Core Retail Sales / Retail Sales) so there is likely to be more movement during the New York session than the London session.