USDJPY: Seems likely to trade a narrow range ahead of the FOMC
US$Jpy has ground higher, to reach 109.88, on the back of the dollar strength seen in the other major pairs, taking out the important 109.45/65 level in the process, and now seemingly has 110.00+ in its sights.
1 hour/4 hour indicators: Mixed.
Daily Indicators: Up
Weekly Indicators: Turning higher
Preferred Strategy: US$Jpy seems likely to trade a narrow range ahead of the FOMC Meeting later in the day, but as before, with the longer term charts looking positive, a test of 110.00 seems to be on the cards. If so, look for a test of 110.25, which should be strong, ahead of 110.50 and 110.85. Note that the reverse SHS formation, with the neckline at 107.85, suggests a target at somewhere near 110.70.
The short term charts look a little mixed, possibly allowing for a dip, and on the downside, buyers will be seen today at 109.45/50, which previously acted as a cap, which should be reasonable support, below which could see a run back to the session low of 109.22, and then to 109.00. Trading from the long side is again preferred; today looking for dips towards 109.45/50, with a SL placed under 109.00
Buy US$Jpy @ 109.50. SL @ 108.95, TP @ 110.65
Japan Services 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.
