USDJPY: Bounce from below 100 signals short covering rally
USDJPY bearish signals on the week and for Tuesday have been confirmed, investors selling the market yesterday for an initial loss of 1 ¾ Big Figs. However, buyers have returned to the market from close to June’s near 3-year base at 99.01 for sentiment to recover by over 1 Big Fig from the day’s 99.54 low. Gains above 100, given similar bounces in June and July, have encouraged short covering in August too and signals remain temporarily bullish.
Allow room to buy the dip and raise the stop to the entry point if the first target is met.
Entry: Market and 100.27, just above today's Asian low.
Time horizon: Today only.
USDJPY daily chart
USDJPY 4-hour chart
USDJPY weekly chart
— Edited by Susan McDonald
Non-independent investment research disclaimer applies. Read more