USDJPY: The outlook remains unchanged

Jim Langlands FX Charts

Preferred Strategy: US$Jpy was choppy on Friday, trading the entire day’s range of 113.62/114.42 following the release of the US jobs data, before ending the day, once again, near 114.00.

The outlook remains unchanged, and technically the short term momentum indicators still look mixed/flat so a fairly nimble stance is required. On the topside, strong resistance now lies at 114.40/50 but above which could see a test of the descending trend resistance, currently at around 114.90. A break of 115.00 would then see little resistance until 115.20 and then 115.50.

On the downside, minor support will be seen at 113.80 and at 113.50/60, below which could then head back to the 31 Oct low (112.95) although this seems unlikely today. If wrong, a sustained break of 113.00 would see us back in the previous 112/113 range, where 112.75 would be the first level of support ahead of 112.30.

I remain fairly neutral, although I still like the dollar in the medium term and prefer to buy dips. Watch out for the BOJ Minutes today – no surprises expected.

Economic data highlights will include:

M: BOJ Minutes

T: Leading Economic Index, Coincident Index , BOJ Kuroda Speech

W: Trade Balance, Current Account, Machinery Orders, Foreign Bond/Stocks Investment

T: Tertiary Industry Index, co Watchers Survey, Machine Tool Orders

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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