USDJPY: Selling rallies

Jim Langlands FX Charts

US$Jpy had a choppy session (110.62/111.57) and is closing the day in the middle, close to the 111.00 pivot.

In the short term, both the 1 and 4 hour charts are now pointing a little higher, suggesting that the downside will remain supported at the lows for the coming session but as before, with the dailies still pointing lower, selling rallies does appear to be the dominant theme. If we do take out the session low, there is then little support to be seen until 110.10, which should be strong, but 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, minor 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 today.

Economic data highlights will include:

Foreign Bond/Stocks Investment, Nikkei Flash Mfg 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.

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