Since posting a 5 ¾ year high in January, USDJPY sentiment has weakened, highlighted by a falling trend of lower weekly highs. Although this has taken prices below their pivotal 100 & 200 day average rates, a long sequence of higher Quarterly lows remains intact, so the pullback is most likely corrective. So while the sequence of lower weekly highs keeps this week’s signals pointing lower, with sentiment trading close to this year’s lows at 100.75/81, the view is a cautious one, selling modestly on the open and then at 101.67, Thursday’s opening trade, with a stop loss at 102.03, the 200 day average. Targets are to 101.13, last week’s low, 100.85, this year’s base and 100.00, a 62% pullback to the entire Oct-Jan gains.
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