USDJPY: The short term momentum indicators are looking positive

Jim Langlands FX Charts

US$Jpy had a more positive session on Tuesday as risk sentiment improved, holding on above decent support below 112.00 and slowly squeezing up to a high of 112.70

The short term momentum indicators are looking positive today and on the topside, resistance on Tuesday will be seen at 112.70, ahead of 113.00, a break of which could see the dollar head back towards 113.15 and possibly on to 113.30.

The daily momentum indicators are still pointing lower though and we could see another run to levels below 112.00, although decent support lies in the 111.50/70 area where it might be worth trying buy some dollars if we ever see it down there..

Preferred Strategy: Support today will arrive at 112.20/112.00 and I doubt that we go under here today, and overall I suspect we may be in for a couple of days of 112/113 range trading.

In the longer term I still prefer to look to buy the dollar but prefer to wait until we see 112.00/111.50.

Buy US$Jpy @ 112.15. SL @ 112.40, TP @ 113.50

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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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