USD/JPY: Has Left The Station...Next Stop 110.00
Good morning Traders and welcome back to EverythingFX. I'm writing to you all from a nice sunny London morning.
The US Dollar is currently trading at 111.100 against the Japanese Yen during today's London session.
As stated on the Technical Floor we were expected to reject in and around 111.700/111.800 where we saw price pulling back from on at the start of the week. We have then printed a lower swing high where i do now expect the price to continue to the downside.
Looking at a 4-hour timeframe we can see we are creating significant lower swing highs as we trend further down. As shown in the image above we have pulled up to the highlighted zone where I see price pulling back from. From the current price, it is a good 110 PIP trade back to our monthly support of 110.000. Provided we get a break of that level of support our next downside support lines up at 108.000 providing a good swing point to hold out for an extra 200 PIPs. What would invalidate my bias on this is a break of daily resistance at 111.500
Fundamentally we have PPI's coming out in the US today at 13:30 GMT as well as FED Members who are scheduled to speak. Do stay tuned to our market news section for Updates on these events as well as our twitter feed for comments from the FED Members.