SPOT USDJPY - lower weekly highs & lows below daily movbing averages keep signals pointing lower

​USDJPY sellers have returned to the market in July, as they did in May from close to 114.64, a 62% recovery to this year’s losses. The end to a sequence of higher weekly lows has subsequently turned signals in each of the last 2 weeks to bearish and these have been confirmed with last week’s sentiment posting a 2nd lower weekly high & low in a row. Prices are trading below their key daily average rates as well as the 200-week line, but like last week, where the outlook also recommended selling rallies, further bounces are likely. These should be temporary and the outlook for this week remains bearish, selling on the open and then at 111.26, Friday’s opening trade with a stop loss at 112.52, the 20th July high. Targets are to 110.10, 108.82, June’s base and 108.13, this year’s low trade in April.