A Green Morning So Far
This morning feels the opposite of yesterday. Yesterday we woke up on a losing signal, while this morning, I found our USD/JPY signal closed in green.
We opened a buy USD/JPY signal last night when this pair failed for the second time to break the 112.50 support level. A failure to break support usually means that a reverse might follow or at least a retrace higher, so I accepted that it was a bit dangerous going short at that time.
But the 20 SMA in grey came to our rescue. Actually, that was the main reason we issued that forex signal at that exact time.
The 200 SMA in grey rewarded us with 25 pips.
It worked well enough for our forex signal, as the price slipped lower again to hit our take profit target, although the 112.50 didn´t let go. This level is becoming interesting now since it has survived a number of attacks from USD/JPY sellers.
So, the case for opening a long term buy forex signal against this support level is getting stronger. In fact, I´ll be very tempted to open that signal if we see another retest today followed by another failure to breach it.
The economic calendar this morning was green as well. Eurozone flash services PMI and particularly flash manufacturing PMI came out better than expected. That´s yet another piece of the puzzle for the Euro traders. Positive momentum is accumulating, so it will become visible sooner or later.
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