USDJPY Threatens Opening Range- Sub 118 Targets In View
- Weekly opening range to validate scalp bias
- Short-scalps at risk above 118 support- (weekly/monthly ORL)
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- USDJPY testing interim support 118.04/18 (near-term bullish invalidation)
- Resistance 119.85 & 120.66/81- bearish invalidation
- Weekly opening range to validate near-term scalp bias
- Support break targets MLP (blue) & 116.93
- Daily RSI Support & Resistance triggers pending
- Event Risk Ahead: US Retail Sales tomorrow & CPI, Industrial Production & University of Michigan on Friday
Notes:The USDJPY is putting in a clean weekly opening range just above near-term support at 118.04/18. We’ve been tracking the pair lower since the post-NFP rally into the 119.70/80 resistance levels as we continue to hold within the confines of a well-formed descending Andrew’s pitchfork formation. The initial weekly opening range looks to be defined by 118-119.30 and we’ll need a break of this range to validate our near-term bias. That said, we’ll continue to favor the short-side while within the confines of this formation.
Bottom line: we’re looking for a break sub-118 to keep our short-bias in play with only a breach above 119.24 invalidating our near-term outlook. Caution is warranted heading into US event risk later this week with inflation data and the University of Michigan confidence surveys likely to fuel added volatility in USD crosses.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
- Key Levels for USD Crosses, Gold Ahead of NFPs
- GBPCAD Scalps Target Major Support- Shorts at Risk Above 1.7850
- GBPNZD Opening Range in Focus Ahead of BoE- 1.9722 Key Support
---Written by Michael Boutros, Currency Strategist with DailyFX
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