USDJPY: Resistance will be seen at the 200 DMA
|US$Jpy has been choppy, either side of 109.00 today, but is finishing towards session lows of 108.31, currently near 108.50.
The daily momentum indicators look heavy although the 4 hour charts look less certain on the downside and the base of the channel, currently at around 108.20 may continue to decent provide support. Below the 108.12, 17 Apr low would find further support at 107.80 and 107.50 although I think this unlikely in the short term. On the topside, resistance will be seen at the 200 DMA, which may continue to act as a pivot, at around 108.80, but above which could return to 109.00 and the session high of 109.20.
I remain neutral on US$Jpy although the generally soft outlook for the dollar may keep the pressure on the downside, which would certainly increase of the geo-political tensions increase, with N Korea then main focus.
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