USDJPY: A choppy session near to current levels

Jim Langlands FX Charts

Preferred Strategy: US$Jpy has had another choppy session but has again ended up at 113.00, where the Fibo level at 112.95 is acting as a magnate.

With the short term momentum indicators looking mixed, a choppy session near to current levels would not surprise, and on the topside, minor resistance now lies at 113.30/35, ahead of 113.50, 113.70 and the 14 Nov high of 113.90. Back above 114.00 and the 9 Nov high of 114.06 is unlikely today but if wrong, could return to 114.35/45 and beyond, towards the 114.73, 6^th Nov high. Further out, we could eventually see a retest of the descending trend resistance, currently at around 114.90, and a break of 115.00 would then see little resistance until 115.20 and then 115.50.

The downside will once again find bids at 112.70 and then at 112.50. This may hold today, but if wrong, look for a move towards 112.30 and 112.00, ahead of strong support at 111.80 (100 DMA/200 DMA).

As before, I remain fairly neutral, although I still like the dollar in the medium term and prefer to buy dips, but today looks like being a choppy and rather directionless session. Use 112.70/113.30 as a guide.

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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