Bullish signals for USDJPY on the week and in each of the last 2 days have been confirmed, investors buying the market yesterday to post a 3rd strong up-day in a row and for a gain of almost 1 Big Fig on the day. The buying has come following a daily Hammer at this month’s 101.50 low and prices have improved above their 100 & 200 day average rates.
However, the rally has stalled ahead of April’s high and with sentiment weakening in Asia this morning, the outlook for Thursday has switched to cautiously and temporarily bearish, selling on the open and at 103.97, today’s high in Asia, with a stop loss at 104.13, April’s top. Targets are to 103.67/70, today’s Asian low, 103.50 and 103.20, yesterday’s afternoon base.
