USDJPY: Another choppy session in the 111.00/112.00 area
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
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.
