USD/JPY Signal Update
No signal was given yesterday.
Today’s USD/JPY Signal
No signal is given today.
Yesterday we failed to make a new daily high for the first time in 6 trading days. We also made a new 2 day low this morning, from which the price did rise, but failed again at the time of writing to make a new high, and now falling off from the high. These are all minor signs that the strong, parabolic bullishness in this pair may finally be beginning to tail off and produce the pull back that many of us are waiting for before we look to go long again of this pair.
There are no really obvious support levels providing probable high-quality entrance points before 105.69, which was a previous swing high that may flip to support, and this is a fairly long way away from where the price is right now.
It is probably that nothing really will happen before the FOMC statement tomorrow evening. This might be the catalyst to drive the price down before it can rally again. Of course, it might just cause a spike higher. If that does happen, watch out for possible resistance at 107.50, which the market will probably see a key psychological number. In any case it is likely to clarify the situation and make the best next trade more obvious.
There is a high-impact event scheduled today concerning the USD, but nothing regarding the JPY. At 1:30pm London time there will be a release of US PPI data.