USD/JPY Signal Update
There is no outstanding signal.
Today’s USD/JPY Signal
No signal is given today.
USD/JPY Analysis
There are finally some signs that this wild upwards move is going to stall and at least pull back for a while, with the new high made last Friday leading to a quick and sharp fall. We now have a failed 2B breakout at 115.50 establishing a double top.
At the time of writing, the price is just sitting on flipped resistance to support located just about level with the round number at 114.00. It is too early to make a prediction but this might be today’s low and we could see a move up from hear, and least for today’s London session.
The next logical support level below us would be the gap and psychological number confluence at 112.50, followed by the very round number at 110.00.
It is important to remember that the JPY can move very fast and suddenly, and that wild and strong moves up are often followed by proportionately large pull backs. However, there is no real news on the agenda today, so we are likely to see fairly quiet and calm trading.
We might also see some support at 113.00. If there is a relatively strong move today, I think it is more likely to be downwards than upwards. There will have been much profit-taking above 115.00 so I doubt we will see that double top area again for at least a few days.
There are no high-impact news releases scheduled today that are likely to affect either the JPY or the USD. It is likely to be a very quiet day.