USDJPY: Sidelined – look to buy dips

Jim Langlands FX Charts

US$Jpy is firmer today and has now taken out the 200 DMA at 110.15, which will now provide support. With US yields looking strong, the dollar should now head higher.

1 hour/4 hour indicators: Up – Becoming Overbought.

Daily Indicators: Turning higher?.

Weekly Indicators: Turning higher

Preferred Strategy: The momentum indicators are rather mixed heading into Wednesday, with the hourly charts now rather overbought, so a cautious stance is required, but buying dips, towards 109.80/110.00 today, remains the plan

If the dollar does head higher, then above 110.50, look for a run towards 110.85 (76.4% of 114.73/104.60). Beyond there, 111.00 would attract, above which there is not a lot of resistance ahead of 111.45/50.

The initial support will arrive at 110.15/00 ahead of 109.80 and the 100 WMA at 109.45 and then 109.20/15.

Sidelined – look to buy dips.

Economic data highlights will include:

Japan Preliminary Q1 GDP, Capacity Utilisation, Industrial Production

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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