USDJPY: The 4 hour charts suggesting prospect of more gains ahead

Jim Langlands FX Charts

Preferred Strategy: US$Jpy has headed higher on Wednesday, underpinned by the solid day in US stocks, and has reached a high of 113.04 with the 4 hour charts suggesting prospect of more gains ahead. 113.20 will be decent resistance, but above there 113.43 (6 Oct high), 114.00 and 114.49 (11 July high) would eventually beckon. The dailies currently look less certain of the upside, and on the downside, support today should arrive at around 112.60 and then at the 200 HMA at 112.30. The session low was at 112.12 which looks fairly safe, but back below 112.00, good support would be at 111.60/70. Buying dips is preferred today although further out, with the dailies looking less positive, further range trade near current levels may be in store.

Buy US$Jpy @ 112.75. SL @ 112.15, TP @ 113.45.

Economic data highlights will include:

T: Trade Balance, Foreign Bond/Stocks Investment, All Industry Activity Inde

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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