The USD has been showing strength versus the JPY since rebounding from a test of 104.40. Today the test would be the 105.50 level that would be telling.
After initially moving lower early in the U.K. session the pair reversed higher and a long was taken risking 14 pips for a potential 36 pips to our daily target at 105.67. Price moved higher going into the U.S. session overlap gaining momentum. We protected our profits as the pair moved higher, as we did our daily target at 105.67 once reached and the trade was closed.
The next levels above to keep an eye on include: 105.77, 106.00, 106.25 and 106.56. A move below 105.42 could move down to test: 105.26, 105.00, 104.91, 104.64 and 104.55.
Of the economic new releases pending, be cautious trading in advance of the ECB monetary policy statement and there will be lots of U.S. and Canadian news on Wednesday.
Good luck with your trading!
