USD/JPY Signal Update
Yesterday’s signal was not triggered as the price never reached 100.88.
Today’s USD/JPY Signals
No signals are given today, as we are too far away from any key support or resistance levels.
USD/JPY Analysis
We can now forget about the old long-term bullish trend lines as they have been abused too much by the price and draw new trend lines based upon more recent price action.
The first trend line can be drawn connecting the swing highs from early April to date. The price just rejected this trend line a few hours ago so may continue downwards.
Below we can also connect swing lows from the recent period to form a narrowing descending triangle. I am very dubious about any trend lines that can be drawn down here as there is so much room for ambiguity. Of course, the upper trend line is likely to be somewhat unreliable too as it is not very long-term, but several weeks are long enough to be worth noticing.
Overall this would put us in a slight downward trend, but this pair is generally choppy and has been going sideways for quite a while. I disagree with my colleague Christopher Lewis’ continuing long-term bullishness.
There may be weak support at 101.50 where we could bounce if continue falling. I am not confident in the resistance at 102.04 but price did turn earlier not far past that level.
There are no important news releases scheduled today for either the JPY or the USD, so it is likely to be a quiet day for this pair.