USDJPY: Looking to buy at 111.50 with a SL under 110.90
|US$Jpy is squeezing slowly higher, although accelerating at the end of the US session, care of the general dollar strength, and appears now to have the chance of heading on towards 112.00, and possibly a fair bit higher.
The short term momentum indicators look increasingly constructive, so if we do see higher levels minor resistance will be seen at 112.00, above which would allow a move to 112.15 and possibly to 112.75. Beyond here, a medium term move higher could take out further Fibo levels at 113.45 and at 114.20. In the meantime, keep an eye on the Friday closing level. The weekly cloud top sits at 111.35, and a Friday close above this could produce fresh buying nest week. The dailies also seem to be attempting to turn higher, which now suggests that we should be looking to buy dips, and on the downside, support should be seen today at 111.50 and then in the 111.00/111.35 area, ahead of the session low of 110.93. If wrong, back below 110.90 would find minor bids again at 110.75/80 and then again at 110.50, below which could again head towards the 110.10 area, which should again be strong support although I don’t think we go back down here yet. Looking to buy at 111.50 with a SL under 110.90 now seems to be the plan. There is a fair bit of Japanese data due today, possibly causing a few waves.
Economic data highlights will include:
CPI, Unemployment, Industrial Production, Housing Starts, Construction Orders
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