USDJPY: A cautious stance is needed

Jim Langlands FX Charts

US$Jpy finished the day pretty much unchanged after a choppy range, particularly after the PPI/Rand headlines, of 113.36/75, but leaving the outlook unchanged.

1 hour/4 hour indicators: Neutral – Turning lower?

Daily Indicators: Turning higher?

Weekly Indicators: Neutral

Preferred Strategy: With the momentum indicators looking mixed, a cautious stance is needed while we wait on today’s Fed decision, where the dot plots for 2018/19 will be the main focus. On the topside, a break of the session high would then allow a run towards the Fibo level at 113.82, beyond which 114.00/05 will see sellers ahead of a possible towards 114.30 and even 114.75. On the downside, support will be seen at 113.35 (Daily cloud top), at 113.20 and again at 113.00 below which could see a run back towards 113.50/60 although probably not today.

As before, look to buy dips towards 113.00/10 with a SL placed sub 112.80.

Buy US$Jpy @ 113.05. SL @ 112.85, TP @ 114.20 (or wait until the FOMC and then go with the flow.)

Economic data highlights will include:

Machinery Orders

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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