USDJPY: Use 111/112 as a guide
US$Jpy had a choppy session on Friday (111.06/71) and closed pretty much in the middle, at 111.50.
Judging from the momentum indicators we can expect more of the same early in the week, and with Japan on holiday from Wednesday onward, interest in the Yen will be rather diminished this week. While the dailies look constructive, the short term momentum indicators look heavy so another choppy session seems likely today. The initial support should arrive at 111.30 and then at around 111.00/10. Below 111.00, which seems a little unlikely today, could see a run towards 110.85, 110.50 and to 110.35, which should be strong support if/when we see it. On the topside, good resistance will be seen at 111.70/75, a break of which could see a quick run to 112.00 and possibly to 112.15 although again, this seems unlikely to be seen today.
Given the look of the short term momentum indicators, selling rallies is mildly preferred, but without looking for too much. Longer term traders will be looking to buy any decent dips. Use 111/112 as a guide, or more likely 111.10/75.
Economic data highlights will include:
M: Nikkei Mfg PMI, Consumer Confidence Index
T: BOJ Minutes, Markit Services PMI
W: Holiday
T: Holiday
F: Holiday
Author
Jim Langlands
FX Charts
Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.
