That certainly looks to be the case and I’m getting the same vibes around here that I got when we tried and failed to break 110 fully.
USD/JPY H4 chart 25 11 2014
There’s a good chance that we see some consolidation at these levels and there’s certainly plenty of support points to bounce between in the interim.
Much like the 105.35 area was a focal point of a strong support area last month, similarly there’s the same type of level around 110/109. That would be an ideal level for a decent dip buy, dependant on the circumstances. Ahead of that there’s the 112.40 level, which was the 61.8 fib of the 2002/2011 hi/lo and it’s another firm level worth monitoring. It has the added benefit of the 50 fib of the 1998/2011 hi/lo just under at 111.62.
USD/JPY Monthly chart 25 11 2014
We’ve had the usual lack of enthusiasm for better US data and the BOJ pumping trade is on the back burner so there’s no real immediate bullish bias at the moment. It might be just a pause for breath so we’ll let the prices do the talking on the rest of the data releases. The US is still ticking over and the market is still going to go looking for rate hike news so the bullish bias does remains over the longer term outlook.