USD/JPY: a buy on dips ?

Currently, USD/JPY is trading at 113.63, down -0.12% on the day, having posted a daily high at 113.86 and low at 113.58.

USD/JPY is slightly lower on the open in Tokyo vrs a corrective move overnight that reached a high of 113.99. Analysts at Westpac offered the Yen as a high conviction trade at the end of last month with a buy USD/JPY and buy stop at 109.20. "BoJ likely sidelined for a while with retail sales, jobs to applicants and household spending all stronger lately and higher commodity prices coupled with the weaker ¥ signaling an improved pulse in prices and inflation expectations. USD/JPY will be all about the FOMC in Dec and Trump in Jan. We stick with the view that mth-end/yr-end flows favour profit taking and a dip back toward the 200dma - Buy that dip."

USD/JPY levels

With spot trading at 113.64, we can see next resistance ahead at 113.77 (Daily Open), 113.86 (Daily High), 113.87 (Hourly 20 EMA), 113.91 (Daily Classic PP) and 113.92 (Hourly 100 SMA). Support below can be found at 113.62 (Daily Classic S1), 113.58 (Weekly Low), 113.58 (Daily Low), 113.45 (Hourly 200 SMA) and 113.41 (Yesterday's Low).