Against a background of 4 unchanged weekly USDJPY closes in a row, the indecision coming from close to a key 38% recovery to the entire 2007-2011 USDJPY sell-off, and with prices trading inside the 25th February’s strong bearish reversal following a new 2 ½ year high at 94.78, this week’s signals are neutral. Yesterday’s trading lacked any strong trend, as although the market posted a 5th higher daily low in a row, a small down-day was recorded. However, the sequence of higher daily lows has been ended in Asia this morning and with last week’s bearish Hanging Man in the background, the outlook for Tuesday is to sell on the open, allowing room to add to shorts on a rally to 93.30, with a stop loss at 93.72. The immediate profit objective is 92.75, with a move through this point targeting 92.44, Friday’s low and then towards 92.01, Thursday’s low trade. The risk to this call however would be with buying through a stop at 93.72, yesterday’s high, a cautiously positive signal improving sentiment to 94.78, last week’s 2 ½ year top.
EasyForexNews Research Team