USDJPY: Sidelined – look to buy dips
|US$Jpy is firmer today and has now taken out the 200 DMA at 110.15, which will now provide support. With US yields looking strong, the dollar should now head higher.
1 hour/4 hour indicators: Up – Becoming Overbought.
Daily Indicators: Turning higher?.
Weekly Indicators: Turning higher
Preferred Strategy: The momentum indicators are rather mixed heading into Wednesday, with the hourly charts now rather overbought, so a cautious stance is required, but buying dips, towards 109.80/110.00 today, remains the plan
If the dollar does head higher, then above 110.50, look for a run towards 110.85 (76.4% of 114.73/104.60). Beyond there, 111.00 would attract, above which there is not a lot of resistance ahead of 111.45/50.
The initial support will arrive at 110.15/00 ahead of 109.80 and the 100 WMA at 109.45 and then 109.20/15.
Sidelined – look to buy dips.
Economic data highlights will include:
Japan Preliminary Q1 GDP, Capacity Utilisation, Industrial Production
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