24 Hour Outlook: Prefer to buy dips
Medium Term: Neutral -Look to buy dips @ 111.20/50
Preferred 24-hour Strategy: Prefer to buy dips. SL under 111.00
US$Jpy is back at 112.00 after a volatile session following on from yesterday’s BOJ meeting, but with most of the action coming later in the day during European/US trade. The slide in the dollar, on the back of the Euro move, and then on the Trump story saw the dollar fall hard, to 111.48 although once again the strong support in the 111.30/70 area has so far kept the dollar afloat.
The momentum indicators are now looking mixed and another choppy session either side of 112.00 would not surprise. 111.70 will again see buyers, below which could then head back towards 111.50. Under there, the monthly cloud top is still at 111.30 and should also see strong bids. Below here though could then see a run to 111.00 and to 110.65.
On the topside, the daily charts are pointing still pointing lower, but if we do see a near-term bounce then 112.40 will provide the initial resistance ahead of 112.65/70 will provide the initial resistance. If we get back above the 17 July high of 112.85 further offers will arrive at 113.00 ahead of 14 July’s high at 113.57.
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