USDJPY: Slipped to a low of 113.38
Preferred Strategy: US$Jpy slipped to a low of 113.38 on Wednesday before a recovery to sit at 113.85 into the NY close, leaving the bigger picture outlook unchanged.
The short term technical outlook also remains unchanged, and the charts look mixed/flat so a fairly nimble stance is required, with further choppy trade either side of 114.00 looking possible over the next couple of days.
On the downside, support will be seen at 113.50, below which could then head back to the session low, to the daily Kijun at 113.20 and then at the Fibo level at 112.95 although this seems unlikely today. If wrong, a sustained break of 113.00 would see us back in the previous 112/113 range, where 112.75 would be the first level of support ahead of 112.30.
On the topside, minor resistance now lies at 114.00, above which could return to 114.35/45 and above, 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.
I remain fairly neutral, although I still like the dollar in the medium term and prefer to buy dips.
Economic data highlights will include:
Trade Balance, Current Account, Tertiary Industry Index, Eco Watchers Survey, Machine Tool Orders
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.
