US$Jpy had another choppy session on Monday in trading a range of 110.92/111.60, closing pretty much unchanged on the day.
While the dailies still point lower, the 4 hour charts are still attempting a recovery after having become oversold and further short term gains would not surprise although the weak US$ seen elsewhere may curb any upside momentum. On the topside, above the session high, look for good resistance in the 111.70/80 range but a break of which could then see a move towards 112.00 and 112.30, which might be a decent sell area if we get there.
On the downside, the initial support will be seen at 110.90/111.00 and again at 110.70, ahead of last Thursday’s low of 110.23. A break of this would then find little support until we reach 109.60, albeit not today. Another choppy session in the 111.00/112.00 area would not surprise on Tuesday.
Economic data highlights will include:
Nikkei Flash Mfg PMI, All Industry Activity Index
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