In the same way I’ve been watching the top for signs of consolidation, the focus has turned to watching the bottom. 118.40 was a level of support that held up on Friday and the break overnight has pulled up ahead of 118.00 for the second time this month.
USD/JPY H4 chart 12 01 2015
We’re up through 119 by a few pips right now and the 55H4 ma has been a decent gauge for the recent highs. It’s slowly being joined by the 100H4 ma and although it hasn’t really been respected by the price, having them come together could strengthen the two levels. On Friday I missed the short trade from 119.80 but I was orders in for a long at 118.15 overnight so that’s made up for it. I still prefer to play from the long side anyway.
There’s next to nothing on the calendar today and the Monday’s following NFP can be slow so the lower time frame tech can have more of a say in moves. We’re getting a nice push to 119.20 as I type so I’m going to trail a stop up by around 30-40 pips.
It looks like 118-120 is the immediate range for now with further boundaries at 120.65/70 and around 117.20/50
