USDJPY: Resistance will again be seen at 111.50/60

Jim Langlands FX Charts

US$Jpy chopped around either side of 111.00 on Friday but managed to close towards the higher end of the range despite the failure of Congress to pass the US Healthcare bill.

In the short term, the short term charts are still pointing a little higher suggesting that the downside will once again remain supported at 110.50/60 on Monday, but as before, with the dailies pointing lower, selling rallies does appear to be the dominant theme. If we do take out 110.60, and the option related bids ahead of 110.50, there is then little support to be seen until 110.10, which should be strong, below which would find buyers at 109.85/90. Under there, it again becomes pretty thin until around 109.35 and 109.00. On the topside, resistance will again be seen at 111.50/60, ahead of the initial Fibo resistance at 111.75, a break of which could see a run back to 112.00/25 although this seems doubtful today. Selling rallies, with a SL placed above 112.10 seems to be the plan on Monday.

Economic data highlights will include:

W: Retail Sales/Trade (Feb)

T: Foreign Bond/Stocks Investment

F: CPI, Unemployment, Industrial Production, Housing Starts, Construction Orders

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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