USDJPY: The dailies continue to pick up a more positive tone
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.
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Author
Jim Langlands
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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.
