USD/JPY: The Dollar drifts lower; attempts to remain above 98.00

Failure to break above 99.60 resistance level has brought the dollar to intra-week low at 97.90 so far, and the pair attempts to remain above 97.90/98.00 levels.Initial support remains at the mentioned 97.90/98.00 level, and below there, the Dollar might find support at 97.45 and 97.15 (Apr 29 high).

On the upside, resistance levels remain at 98.35 and 98.60; above there, 99.20 (May 5 high).According to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, affirms that the pair is shaping a “heat and shoulders” pattern: “Tricky as prices are supported by a large Ichimoku ‘cloud’ yet a potential (if crooked) ‘head-and-shoulders’ pattern is forming. Expect more hesitation between 96.00 and 99.00 for the rest of this week

Today's Trading Signals

The trading strategies are based exclusively on technical analysis and are short term with a maximum time horizon of 3 to 5 days.The philosophy behind the Today's Trading Signals (TTS) is to take low risk, high return positions with tight stops.

That means Financial Trend Analysis (FTA) focus the most on placing the right stops.Every morning FTA reviews the market and the specific strategy, recalculates the risk/reward and then determines the strategy regardless of previous strategy in the specific security. FTA can change the strategy from SHORT to LONG and vice versa regardless of the previous (day’s) strategy.

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