USDJPY: Finally took out the recent highs on Friday

Jim Langlands FX Charts

Preferred Strategy: US$Jpy finally took out the recent highs on Friday and traded up to 113.56 and now, having broken decent downtrend resistance, looks capable of heading higher. There is not a lot of resistance ahead of 114.00, above which there is again very little to be seen until 114.50.On the downside, minor support today should arrive at 113.20/00 below which 112.80 and Friday’s low of 112.50 should provide decent backup. Below there, the 19 Oct low at 112.30, and the 18 Oct low at 112.12 would attract. Looking for levels to buy dollar again seems to be the plan but the market is already short of Yen and so caution is warranted as any need for safe haven demand could see some very quick and painful dips.

Buy US$Jpy @ 113.15. SL @ 112.70, TP @ 114.40.

Economic data highlights will include:

M: Japan Election Result, Leading Economic Index, Coincident Index

T: Nikkei Mfg Flash PMI

T: Foreign Bond/Stocks Investment

F: CPI

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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