USDJPY: A cautious approach is required

Jim Langlands FX Charts

US$Jpy has been volatile again on Thursday, falling to 105.80 in Asia, bouncing back above 106.00, falling again to the lows and then chopping higher to finish near session highs of 106.40, pretty much unchanged from yesterday’s close.

1 hour/4 hour indicators: Mixed.

Daily Indicators: Turning higher

Weekly Indicators: Turning lower

Preferred Strategy: A cautious approach is required and 106/107 range may cover it today, although the momentum indicators do look a little more constructive and 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.

Back below 106.00 could see a run back towards the session low and the 200 MMA at 105.70 although this is less favoured today and I prefer to buy dips.

Economic data highlights will include:

Capacity Utilisation – Feb, Industrial Production – Jan

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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