USDJPY steadies after 111.00 break (currently 110.55)

  • USDJPY finds support around 110.50 after confirming the break under 111.00
  • General USD weakness offset by yen selling in the crosses
  • BOJ Kuroda’s overnight bullish comments on economy saw yen buying which was then offset by maintaining that QQE and YCC will remain in place for as long a necessary
  • 110.52/90 the range through Europe and into the US day, 110.90 main intraday resistance ahead of 111.00, and confirming the break
  • 55 MMA at 110.62 could be important on a month-end close below. Have not held below since 2012
  • Friday’s late bounce to 111.20 marks the next resistance if 111.00 reclaimed
  • Next support under 110.50 is around old S&R at 110.20 and the 61.8 fib of Sep 2017 swing up at 110.14. Stops in place through 110.15.
  • Bids and strong barrier interest down at 110.00, stops building below. 100 WMA 109.92
  • Break of 110.00 brings lower end of 2017 range in play around 108’s
  • Fresh life breathed into markets as vols rise. 1m ATM at 7.38% from sub-6.00% last week
  • No help on hand from blank US data slate. Only US Empire state data to give a first look at January manufacturing tomorrow
  • Japan gets Dec 2017 PPI data tonight. 0.4% exp vs 0.4% prior m/m. 3.2% exp vs 3.5% prior y/y
USDJPY daily chart

USDJPY daily chart

 

Ryan Littlestone

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

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Ryan Littlestone

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