We will just touch on USDJPY with the start of a fresh week. Note that for us this pair remains to be a carry trade more than anything else though with inflation metrics for the US coming out on Wednesday the potential for price action would be attractive. The formula here remains straight forward inflation equal upside while weak results could see us dipping to better prices to join the carry trade.
Resistance
- 157.954 – Daily High
- 157.000 – Intraday Resistances
- 155.952 – Intraday Consolidation Resistance
Support
- 155.187 – 20D Moving Average
- 154.182 – Intraday Consolidation Lows
- 153.364 – Intraday Consolidation Lows
We prefer remaining sidelined until Wednesday’s US CPI report. This said give us a sharp drop and we will be looking for prices to consolidate intraday and developing long hourly tails to suggest its time to get ready to jump long. The pair for us remains a carry trade in need of a good entry point to go long. We would consider sells only if there is a very weak read on CPI.
