USDJPY - Towards 'measured move' but open gap is still a concern

We called for mixed signals in USDJPY yesterday and this proved correct with all trading within Monday’s range (84.37-83.61), an indecisive Inside Day. We have left ‘the window open’ which is a cause for concern (needs to trade to 83.52 to close). Although overnight price action has resulted in the pair trading to a new a 20-month high, mild profit taking has been posted. A measured move would take the pair to 85.46 and this is the level we will focus on. Our first support is located at 83.94 and we will look for a dip today (from the high) to get long. Bullish Bias – looking for buy signals at at 83.94 (with stop at 83.82).

The profit targets will be: 84.44, 85.00 and towards 85.46.

Support levels are: 83.94, 83.82 and 83.52.