USDJPY: A cautious approach is required
|US$Jpy was choppy again following the Fed announcement, but having reached 106.63 the dollar then fell to lows of 105.87, closing at the familiar 106.00 level.
1 hour/4 hour indicators:Mixed.
Daily Indicators: Turning higher
Weekly Indicators: Turning lower
Preferred Strategy: A cautious approach is required, and as we are confined within the middle of the range of the last month, we should probably expect more of the same today. Technically though, the daily momentum indicators still look mildly constructive and if we manage to break above 106.60, a test of the descending trend resistance at around 106.75 may be on the cards. Above here could stretch to 107.00 and then to 107.30/40.
On the downside, back below 105.85/90, support will be seen at the 200 MMA at 105.70 and then at 105.60. Below here opens 105.25 and 105.00.
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