USDJPY: The 4 hour momentum indicators look mildly constructive
|US$Jpy was choppy again on Monday, bouncing around between 10567 and 106.30, and more of the same looks likely while we wait on Wednesday’s FOMC Interest Rate Decision and, just as important, whether the dot-plot changes from 3 hikes to 4 for the rest of the year.
1 hour/4 hour indicators:Turning higher.
Daily Indicators: Turning higher
Weekly Indicators: Turning lower
Preferred Strategy: A cautious approach is required again today, and a similar range may cover it. The 4 hour momentum indicators do look mildly constructive and if we manage to break above 106.40, a test of the descending trend resistance at around 106.75 may be on the cards. Above here could stretch to 107.00 and then to 107.30/40.
On the downside, back below 106.00, support will be seen at the 200 MMA at 105.70 and then at 105.60. Below here opens 105.25 and 105.00 although this is less favoured today and I prefer to buy dips.
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