USDJPY: Seems likely to trade a narrow range ahead of the FOMC

Jim Langlands FX Charts

US$Jpy has ground higher, to reach 109.88, on the back of the dollar strength seen in the other major pairs, taking out the important 109.45/65 level in the process, and now seemingly has 110.00+ in its sights.

1 hour/4 hour indicators: Mixed.

Daily Indicators: Up

Weekly Indicators: Turning higher

Preferred Strategy: US$Jpy seems likely to trade a narrow range ahead of the FOMC Meeting later in the day, but as before, with the longer term charts looking positive, a test of 110.00 seems to be on the cards. If so, look for a test of 110.25, which should be strong, ahead of 110.50 and 110.85. Note that the reverse SHS formation, with the neckline at 107.85, suggests a target at somewhere near 110.70.

The short term charts look a little mixed, possibly allowing for a dip, and on the downside, buyers will be seen today at 109.45/50, which previously acted as a cap, which should be reasonable support, below which could see a run back to the session low of 109.22, and then to 109.00. Trading from the long side is again preferred; today looking for dips towards 109.45/50, with a SL placed under 109.00

Buy US$Jpy @ 109.50. SL @ 108.95, TP @ 110.65

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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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