USD/JPY Signal Update
Last Thursday’s signal was not triggered and expired.
Today’s USD/JPY Signal
No signal is given today.
USD/JPY Analysis
This pair has been the king of the Forex market recently, with the USD being the strongest and the JPY the weakest of all the currencies. We have been making higher lows and higher highs almost every day and the higher highs are actually 6 year highs which are significant. Friday was not an exception; we reached close to 109.50, although Friday unusually has a meaningful upper wick. We have also approached 110.00 so we are starting to see the first signs of a possible pause in the trend. However it is foolish to try to guess the high, so it still makes sense to search for long trades here.
Mondays are usually slow and today is a public holiday in Japan so it is best to be cautious. Additionally, it is difficult to find any obvious support levels at which to seek an entry following a pullback, with the closest such level sitting almost 200 pips below us at around 107.28. There is a level of psychological significance near this too at 107.50, so it could be an interesting area.
Despite the pullbacks from last Friday’s highs, there are still flows of higher lows on almost all the time frames, so there should be some long trades left. However today may not be a great day on which to take them.
There are no high-impact events scheduled today concerning either the JPY or the USD. It is a public holiday in Japan today and so it is likely to be a quiet day for this pair.