US$Jpy reached 111.07 on Friday, but the dollar then came off its highs as US yields went offered and amidst some safe-haven demand, ensuring that the Yen finished the day on a firmer note.
1 hour/4 hour indicators: Turning lower.
Daily Indicators: Turning higher
Weekly Indicators: Turning higher
Preferred Strategy: The short term momentum indicators look rather heavy on Monday and a run back towards 110.00 would not surprise, where the 200 DMA would provide decent support at 110.15, although the longer term charts still point higher and buying dips is preferred.
If so, then above 110.85 (76.4% of 114.73/104.60) would allow a run back to 111.00/10, above which there is not a lot of resistance ahead of 111.45/50.
Sidelined – look to buy dips with a SL under the 100 WMA at 109.50.
Economic data highlights will include:
M: Japan Trade Balance
T: All Industry Activity Index
W: Nikkei Flash Mfg PMI – May
T:
F: Tokyo CPI
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