USDJPY finds some support around the low 111’s

  • Sell off from news that China may limit or halt US bond buying pulls up at 111.27
  • Bond sell off (rising yields) a negative for the buck in this case
  • Markets now on watch for signs of a follow through in US trading
  • US 10’s top out just shy of 2.60%. Face a double top from Dec 2016/Mar 2017 highs 2.65%-2.63%
  • Broken support and 200 DMA at 111.65/67 marks first resistance. Bounce from lows has reached 111.61 so far
  • Next resistance is into 111.85/90, then stronger at 112.00. Further resistance into 112.20 (100 DMA 112.13 & 55 WMA 112.19). Further resistance around old S&R at 112.50
  • Both 55 & 200 WMA’s (112.18 & 112.38) need watching for a weekly close
  • Support very mild 111.40/45, and then the low 111.27 to 111.20
  • 50.0 fib of Sep 2017 swing up at 111.01. Support in place 111.05 down to 110.95. Stops noted through 110.90
  • Break of 110.90 would suggest a steeper fall to test the wider 108’s-114’s range
  • Vols naturally higher in wake of China news 1m ATM vols hit a high of 7.02. Had dipped under 6.00 briefly this week
USDJPY daily chart

USDJPY daily chart

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

Read how Ryan got into trading here
Ryan Littlestone

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