Bearish signals for USDJPY on the week have been confirmed, Tuesday’s trading posting a 7th lower daily high in a row, though with downside momentum stalling for sentiment to close little changed on the day. A 3 ½ Big Fig sell-off since this month’s 6 year high at 100.08 has left daily sentiment oversold and tentative buying in Asia this morning has ended the trend of lower daily highs.
Moves in Asia are to be treated with caution, but it leaves a positive bias to signals and the outlook for Wednesday is bullish above a stop loss at 106.98, today’s Asian low. Targets are to 107.50, 107.75, this week’s high and 108.33, Thursday’s top.