USDJPY: Selling rallies is preferred
|US$Jpy had a very tight session 111.06/37 on Thursday, and in the absence of any real interest on Friday due to holiday thinned markets, it could be much the same today
The 4 hour and daily momentum indicators still looking heavy, and a test of 111.00 – and lower – would not surprise although the hourlies are now pointing higher and it may be worth waiting to see if we can head back towards the important 111.70 level to sell into.
Preferred Strategy: It looks as though the market is still generally trapped in being short Jpy so there will be plenty of sellers into dollar rallies from those looking to cut positions. Selling rallies is preferred today although it could be another quiet one.
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