Although weekly signals are pointing to selling USD/JPY on rallies, a small sequence of higher daily lows kept Tuesday’s signals temporarily bullish. These were confirmed, as initial gains of just under ¼ Big Fig were virtually all given up. The pullback is negative and the pattern of trading is very similar to last week’s.
However, until the trend of higher daily lows is broken, the outlook for Wednesday is just cautiously bearish, selling on the open and at 101.60, yesterday’s high, with a stop loss at 101.70, Thursday’s top.
Targets are to 101.33, yesterday’s low, 101.19, this week’s base and 101.08, last week’s low trade.