USDJPY: The downside will find bids at around 111.00

Jim Langlands FX Charts

US$Jpy has ended near session highs of 111.59 following Dudley’s upbeat comments and appears to have the momentum to make further gains in the coming hours.

The 4 hour/daily momentum indicators are now aligned to look positive, and above the Fibo resistance which coincides with the 111.59 high would open the way to 111.70 and to 111.82/90, which should be decent resistance, but beyond which could head towards 112.15/20.

The downside will find bids at around 111.00, below which could see a return to 111.65/75 although this seems unlikely today, but a break of which would then head towards 110.30 and possibly back to 110.00.

As before, with the dollar, having turned higher to now make 4 consecutive higher lows, it would seem to be building for further gains and as long as we do not make a daily close under 110.64, I prefer to trade it from the long side, looking to buy dips towards 111.00 today. If that fails to occur, then resume a neutral stance.

Economic data highlights will include:

All Industry Activity Index

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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