The thing with sentiment is that it changes like the wind. From last week’s crap out on rate and slowdown worries, all is right with the world today. Earnings have been strong, jobs remain strong, inflation isn’t tanking, all the ducks are lining up again as to why America is recovering. Who’s going to fight it?
USD/JPY has poked its nose above 108 to 108.02 and has fallen back 10 pips. It’s hard to see it stopping here for long before another run up, particularly if stocks confirm the futures pricing with a strong cash open.
Above 108 we face minor resistance at 108.15 then stronger at 108.40/45 then 108.75/80.
USD/JPY H4 chart 23 10 2014
Now look for support to come in at 107.70/75, 107.60 and 107.35/40.
As I’m typing stocks are opening and the S&P opens up 9 points to 1936, Dow +31 at 16493, Nasdaq +44 at 4427
