USDJPY: Support will be seen at 113.20
|Preferred Strategy: US$Jpy had a tight session (113.24/71), leaving the outlook unchanged, and given the rather mixed/neutral look of the momentum indicators we could be in for a similar session today although Kuroda will be speaking at the ECB roundtable conference and could create some waves..
On the downside, support will be seen at 113.20 and then again at 112.95/00, below which there is only minor support to be seen ahead of the mid October low at 112.30 although I don’t think we head this far today.
On the topside, minor resistance now lies at 113.70 and 113.85, ahead of 114.00 and the 9 Nov high of 114.06. Above here, unlikely today, could return to 114.35/45 and beyond, towards the 114.73, 6th Nov high, but above which could see a test of the descending trend resistance, currently at around 114.90. A break of 115.00 would then see little resistance until 115.20 and then 115.50.
As before, I remain fairly neutral, although I still like the dollar in the medium term and prefer to buy dips although right now may be a little premature to do so.
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