USDJPY: A cautious approach is required
|US$Jpy has been heavy again today after the release of the US Retail Sales but within the recent range and looks as though it could chop around current levels as we head towards the 21 March FOMC Meeting. The appointment of Kudlow as the next NEC Director may take some of the fears out of the prospect of a trade war and investors will be hoping for a calmer trade debate, which in turn may underpin the dollar.
1 hour/4 hour indicators:Turning lower
Daily Indicators: Turning higher
Weekly Indicators: Turning lower
Preferred Strategy: A cautious approach is required and 106/107 range may continue to cover it today although the short term momentum indicators do look a little heavy and a test of 106.00 may be on the cards. If so, look for a run back towards the 200 MMA at 105.70. On the topside, resistance will be seen at 106.70/75 and above that at 107.00. All up, don’t expect too much until the Fed, next week, although the dollar does look a little heavy right now.
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