USDJPY: Selling rallies towards 111.70
US$Jpy held on above the important 110.10 support on Tuesday and squeezed higher throughout the session, reaching 111.20, and generally looking a bit more positive for the session ahead.
If we do see higher levels, then resistance will be seen at 111.35 and again at 111.60/70, which may possibly be a sell area, given that the dailies still suggest that further medium term losses are highly possible. On the downside, back below 111.00 would find minor bids today at 110.80 and then again at 110.50, below which could again head towards the 110.10 area which should again be strong support although I don’t think we go back down here yet. If wrong, further buyers would arrive at 109.85/90, but under there, it again becomes pretty thin until around 109.35 and 109.00. Selling rallies towards 111.70, with a SL placed above 112.15 seems to be the plan on Tuesday.
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.
