USDJPY: The outlook remains unchanged
|Preferred Strategy: US$Jpy was choppy on Friday, trading the entire day’s range of 113.62/114.42 following the release of the US jobs data, before ending the day, once again, near 114.00.
The outlook remains unchanged, and technically the short term momentum indicators still look mixed/flat so a fairly nimble stance is required. On the topside, strong resistance now lies at 114.40/50 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.
On the downside, minor support will be seen at 113.80 and at 113.50/60, below which could then head back to the 31 Oct low (112.95) although this seems unlikely today. If wrong, a sustained break of 113.00 would see us back in the previous 112/113 range, where 112.75 would be the first level of support ahead of 112.30.
I remain fairly neutral, although I still like the dollar in the medium term and prefer to buy dips. Watch out for the BOJ Minutes today – no surprises expected.
Economic data highlights will include:
M: BOJ Minutes
T: Leading Economic Index, Coincident Index , BOJ Kuroda Speech
W: Trade Balance, Current Account, Machinery Orders, Foreign Bond/Stocks Investment
T: Tertiary Industry Index, co Watchers Survey, Machine Tool Orders
F
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