#USDJPY: Long term uptrend is intact. Shorter term charts are overbought. Buy dips #fx #forex

By | November 21, 2016
USDJPY: 110.86
Resistance Support
111.88 28 April high 110.40 Minor
111.44 30 May high 110.00 Minor
111.29 (50% pivot of 121.05/98.94) 109.80 Friday low
111.00 Psychological 109.30 100 HMA
110.94 Friday high 108.60 16 Nov low

(23.6% of 101.18/110.91)


US$Jpy continued its relentless run higher on Friday after taking out 110.00, by making several attempts to break through 111.00, falling just short by making a high of 110.94 late in the US session and closing on the trend highs. The uptrend remains firmly intact and the daily momentum indicators still point higher so, on a break of 111.00, which seems imminent, there is little to stop the dollar from heading to 111.25 above which the next minor resistances are seen at 11.45 and at 111.90, with the next Fibo level not seen until 114.20 (61.8% of 121.05/98.94) although that remains over the horizon at this stage. As with Friday’s outlook, although the dollar remains strong, the 4 hour momentum indicators are extremely overbought and continue to show a degree of bearish divergence, so some caution is warranted. Minor support will arrive at 110.30 and at Friday’s low at 109.80, below which, would open the way to 109.00 and even back to the 200 Month MA at 108.30, albeit that this looks unlikely in the near term. Buying dips still seems the longer term plan.

24 Hour: Becoming Overbought – Prefer to buy dips

Medium Term:  Bullish

Economic data highlights will include:

M: Japan Trade Balance, All Industry Activity Index


W: Japan Holiday

T: Nikkei Mfg PMI

F: Japan CPI

Meta Trader
USDJPY: 4 Hour