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, 6th 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
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