A dip lower Monday through minor range support at 119.70/65 lends a negative bias to the broader range environment.
A range theme has been evident since the mid-December reversal of trend line support saw a more bearish shift, but then the latter December rebound through resistance negated the negative theme.
Range Parameters: We see the range defined by 121.00 and 118.86/82.
Range Breakout Challenge
- Upside: Above 121.00 aims higher for 121.86 and a key long term target at 122.45.
- Downside: Below 118.82 sees risk lower for 118.25 and 117.06/116.82, maybe back to 115.56.
- We see a downside bias for 119.23; break here aims towards 118.86/82, which we would look to try to hold.
- But above 119.98/120.00 opens risk up to 120.52, maybe 120.75/83, which we would look to try to cap.
4 Hour USDJPY
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