USDJPY: Remain fairly neutral

Jim Langlands FX Charts

Preferred Strategy: US$Jpy had a choppy session, pretty much confined to the previous range but is finishing the US session towards the lows, in line with the US$ weakness seen elsewhere.

As before, given the rather mixed/neutral look of the momentum indicators we could be in for a similar session today and on the downside, support will be seen at 113.20/30 and then again at 112.95/00, below which there is only minor support to be seen ahead of the mid October low at 112.30 although I don’t think we head this far today.

On the topside, minor resistance now lies at 113.70 and at the session high of 113.90, ahead of 114.00 and the 9 Nov high of 114.06. Above here, unlikely today, could return to 114.35/45 and beyond, towards the 114.73, 6^th Nov high, 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.

As before, I remain fairly neutral, although I still like the dollar in the medium term and prefer to buy dips but right now may be a little premature to do so.

Note that the Japan Q3 GDP is out tonight and is seen slowing from strong 2nd Qtr.

Economic data highlights will include:

Preliminary GDP (Q3), Industrial Production, Capacity Utilisation

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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