Asian Session Notes 3/11/13: Yen pairs/Korean Peninsula in Focus

USDJPY

Resistance: 96.55 minor / 96.72 moderate / 97.49 minor

Support: 95.78 moderate / 95.50 minor / 94.98(00) moderate

USDJPY managed to see a strong follow through to Thursday bullish breakout with strong US Jobs data seeing a broadly firmer dollar. From the daily picture candlesticks suggests momentum is building while we have an overbought stochastic and bullish cross in macd. In the lower time frames we have 4H stochastic poised to cross up inline with the bullish macd. Hourly charts has a double top with stochastic coming off overbought areas and macd heading lower. Given the latter we prefer looking for a pullback to the daily pivot at 95.78 initially before going long with stops under 95.50 the double top trigger.

EURJPY

Resistance: 125.20 minor / 125.84(94) moderate / 126.56 minor

Support: 124.64 moderate / 123.83 minor / 123.30 minor

Given the focus on a strong dollar Friday and the consequent losses in Euro we had EURJPY with a whipsaw unable to hold on to the risk appetite gains as EURUSD sold off. Daily indicators has stochastic crawling around overbought areas while macd has a new bullish cross over. Note we have reentered the previous descending triangles range. From the 4H picture we have macd’s flattening above the signal though stochastic has just crossed up the new crossover suggesting we look for a push past the immediate minor resistance at 125.20. Hourly charts has stochastic looking to reenter overbought levels with a new bullish cross while macd is flat under the signal. For now we prefer a buy on dips to 124.64 though a break of 125.20 may also be seen as a bullish entry for a rin to 125.84 then on to projected highs at 126.38.

GBPJPY

Resistance: 143.55 minor / 144.07 moderate / 144.76 moderate

Support: 143.00 moderate / 142.40(46) moderate / 141.50 moderate

Following strong USD jobs numbers we had GBPJPY with a follow through risk taking rally only to end the day with a shooting star as broad dollar strength saw Cable with new lows under 1.5000. Among indicators we have mixed signals in the daily charts as stochastic comes off overbought areas while macd has new bullish crossover. From the 4H picture we have a bullish bias with macd’s above the signal line and stochastic about to cross higher while candlesticks see a bullish harami. Hourly charts has macd’s heading down and stochastic poised to follow. Overall we have a bullish view for the yen pairs. Given the succession of moderate supports with the EMA’s at 142.40(46) we prefer a buy on dips though sustaining any rally may be difficult past Friday’s highs given the weak Cable.