USDJPY: The 4 hour charts now also looking very positive
|US$Jpy headed up to 108.75 on Monday, closing nearby and with the dollar firmly underpinned by the rising US Treasury yields.
1 hour/4 hour indicators: Mixed.
Daily Indicators: Turning higher?
Weekly Indicators: Turning higher
Preferred Strategy: As before, the daily momentum indicators retain a constructive bias and seem set to head higher still, with the 4 hour charts now also looking very positive. The weeklies are also turning higher and sentiment does appear to be accelerating so buying dips still seems to be the plan.
On the topside, back above the session high of 108.75, would find offers 109.00/05, at 109.15 and at 109.65 although this remains some way off. As we said yesterday, note the reverse SHS formation, with the neckline at 107.85, which has now been broken and suggests a target at somewhere near 110.70.
On the downside, buyers will be seen at 108.50 (minor), at 108.25 and at 108.00 ahead of the neckline (107.85) and the session low at 107.65. This looks unlikely to be seen again today though and trading from the long side is again preferred.
Buy US$Jpy @ 108.20. SL @ 107.60, TP @ 110.50
Economic data highlights will include:
All Industry Activity Index
W:
T:
F: Tokyo CPI, Industrial Production, Retail Sales, BOJ Meeting/Interest Rate Decision/Statement/Outlook
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.