USDJPY: A cautious approach is required

Jim Langlands FX Charts

US$Jpy was choppy again following the Fed announcement, but having reached 106.63 the dollar then fell to lows of 105.87, closing at the familiar 106.00 level.

1 hour/4 hour indicators:Mixed.

Daily Indicators: Turning higher

Weekly Indicators: Turning lower

Preferred Strategy: A cautious approach is required, and as we are confined within the middle of the range of the last month, we should probably expect more of the same today. Technically though, the daily momentum indicators still look mildly constructive and if we manage to break above 106.60, 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 105.85/90, support will be seen at the 200 MMA at 105.70 and then at 105.60. Below here opens 105.25 and 105.00.

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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