USD/JPY: Buying opportunity at 109.25/15

USD/JPY – EUR/JPY

USDJPY although I identified 111.45/65 as a target I am not sure why it has acted as such strong resistance but it has held 4 or 5 tests now.

I wrote this every day since Monday: Dollar pairs are entering a sideways consolidation phase & therefore I think we want to switch to more of a scalping/range trading strategy to take advantage of these conditions.

Good call eh?

EURJPY shorts 120.25/45 stopped above 120.75 this time but we did not reach the upper target of 121.35/45.

Daily Analysis

USDJPY holding below 110.70/60 targets 110.50/40 before first support at 110.10/00. Longs need stops below 109.80 to target 109.60 & buying opportunity at 109.25/15 with stops below 108.90.

Holding above 110.70 targets 111.00/10 before a retest of 111.45/65. There are likely to be so many shorts here now that a break higher triggers a a squeeze to strong resistance at the February high at 112.00/20. On a break higher look for 112.80/113.00.

EURJPY reverses from 121.16 in the longer term sideways trend. Minor support around 120.50 but below here targets best support today at 120.20/00. Stop below 119.90 for support at 119.60/50.

A break above 121.20 targets the February high at 121.35/40. Above 121.50 look for 121.80/90.

Trends

Weekly outlook is neutral.

Daily outlook is neutral.

Short Term outlook is neutral.