The USD is a bit weaker but continuing risk appetite and buoyant stocks seem to be dragging the Yen pairs along for the ride.

I have been wondering which way the U/J would run IF the USD was to weaken BUT stocks continued to rally. It is too early to consider this a new alignment at all but ……I’m keeping an eye on it. 

USDX 4hr: testing the support trend line:

S&P500: is up again and forging new highs:

Yen: there have been two new TC signals here and two look to be brewing BUT there is BoJ Interest Rate news later today. I am waiting until after the news to take any Yen trade.

U/J 4 hr: a new TC signal triggered here off my 5 am candle. Price is above the 4hr and daily Cloud. Apart from BoJ news though there is USD data ( Building Permits & PPI) later tonight that could impact here as well:

U/J daily: Note how price is only about 100 pips below the daily triangle trend line. Maybe this time any new breakout might hold!

A/J: a new TC signal triggered here off my 5 am candle BUT, although price is above the 4hr Cloud, it is below the daily Cloud, albeit there is room to run there:

E/J: a new TC signal is trying to form here but, like the A/J, price is above the 4hr Cloud but well below the daily Cloud.

GBP/JPY: no TC signal here just now either although one is trying to form. BoJ news could help it to form up. Price is above the 4hr Cloud but in the top of the daily Cloud so it wouldn’t take much movement to get this signal going. There is also major GBP news tonight to factor in here as well:

Thoughts: BoJ news has me cautious and waiting but the U/J looks to be the most obvious signal of the lot.