USDJPY - end to lower daily highs points signals temporarily higher

This week’s signals for USDJPY have continued to point down, but with prices testing this year’s lows the outlook has also pointed to selling into strength. Monday’s trading saw buyers return to the market, the rally ending a sequence of lower daily highs which is mildly positive. There have been further gains in Asia though and with signals improving the outlook for Tuesday is to buy on the open and then at 109.90 with a stop loss at 109.51, just below today’s Asia low. Targets are to 110.52, the 8th Aug Marabuzo line, 110.83, the 8th Aug high and 111.43, the 200 week average rate.