USDJPY: Buying into short term weakness

Jim Langlands FX Charts

US$Jpy bounced off support at 111.95/112.00 to finish Friday near session highs of 112.73, underpinned by the rise in US stocks.

1 hour/4 hour indicators: Turning higher

Daily Indicators: Neutral

Weekly Indicators: Neutral

Preferred Strategy: Although the daily charts remain neutral, the short term momentum indicators point higher at the start of the week and if 112.75/85 can be overcome we could then see a return to 113.00 and above, where 113.20/25 should see sellers ahead of the December high of 113.75.

Dips could see a run back to 112.00/20 but buying into short term weakness currently seems to be the plan, with a tight SL placed below 111.90

Buy US$Jpy @ 112.20. SL @ 111.85, TP @ 113.25

Economic data highlights will include:

M: Trade Balance

T: All Industry Activity Index

W: BOJ Interest Rate Decision, Press Conference, Statement

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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