USDJPY: Made it up to 114.09
Preferred Strategy: US$Jpy made it up to 114.09 on the back of the election result but it has been unable to maintain those gains and is falling to new lows into the NY close, currently at 113.25. With both the 1 & 4 hour charts looking heavy, it looks as though we may be in for further downside action and a test of 113.00 could be on the cards, below which would see us back in the previous 112/113 range. Minor support should arrive at 113.20/00 below which 112.80 and Friday’s low of 112.50 should provide decent backup. Below there, the 19 Oct low at 112.30, and the 18 Oct low at 112.12 would attract. On the topside, resistance will be seen at 113.75/85 ahead of the session high of 114.09. I don’t see it up here today, but above there, there is not too much to stop the dollar heading towards 114.50. The daily momentum indicators look mildly positive, so looking for levels to buy the dollar again seems to be the plan but the market is short of Yen and so caution is warranted as any need for safe haven demand could see some very quick and painful dips. Buy US$Jpy @ 112.85. SL @ 112.45, TP @ 114.40.
Economic data highlights will include:
Nikkei Mfg Flash PMI
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.
