Preferred Strategy: US$Jpy has remain rangebound on Thursday, with all the action being in the Yen crosses, which are generally lower (Yen strength).. With both the 1 & 4 hour charts still looking rather uninspired further choppy action looks possible although the dailies continue to pick up a more positive tone, and on the topside, back above 114.00, resistance will be seen at the 25 Oct high of 114.25, above which there is not too much to stop the dollar heading towards 114.50 and beyond that, to the major descending trend resistance, currently at 115.05. If US bond yields continue to climb, then US$Jpy will be testing 115.00 in the near future. On the downside, support will arrive at 113./50, at 133.35 (session low) low, and again at the 24 Oct low at 113.24. Below that, a test of 113.00 could be on the cards, beneath which would see us back in the previous 112/113 range. Minor support should arrive at 113.20/00 below which 112.80 (rising trend support) and Friday’s low of 112.50 should provide decent backup. Overall, with the daily momentum indicators look mildly positive, so buying dips still seems to be the plan although there may be slightly better levels to do so. Buy US$Jpy @ 113.40. SL @ 112.95, TP @ 114.40.
Economic data highlights will include:
Risk Warning Notice Foreign Exchange and CFD trading are high risk and not suitable for everyone. You should carefully consider your investment objectives, level of experience and risk appetite before making a decision to trade with us. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of the markets that you are trading. Margin and leverage To open a leveraged CFD or forex trade you will need to deposit money with us as margin. Margin is typically a relatively small proportion of the overall contract value. For example a contract trading on leverage of 100:1 will require margin of just 1% of the contract value. This means that a small price movement in the underlying will result in large movement in the value of your trade – this can work in your favour, or result in substantial losses. Your may lose your initial deposit and be required to deposit additional margin in order to maintain your position. If you fail to meet any margin requirement your position will be liquidated and you will be responsible for any resulting losses.