FxWirePro: USD/JPY comatose around 111 handle, focus on Q4 GDP data for further direction

USD/JPY chart on Trading View used for analysis

• USD/JPY has been trading in an extremely narrow range with session high at 110.99 and low at 110.81.
   
• The major hovers around 110-EMA and decisive break above 111 handle required for further upside.
   
• Technical studies are biased higher. RSI is above 50 and momentum with the bulls.
   
• Economic data from Japan earlier today showed construction orders up 19.8 percent y/y in Jan, while housing starts up 1.1 percent y/y.
   
• USD/JPY is extending downside as the Japanese yen also remains supported by escalating Indo-Pak political tensions.
   
• We see strong support at 55-EMA at 110.52. Break below will see further downside.
   
• Focus on U.S. weekly jobless claims report (13:30 GMT), along with Q4 GDP report and Kansas Fed manufacturing activity report (16:00 GMT) for further direction.

Support levels - 110.81 (5-DMA), 110.52 (55-EMA), 110.43 (21-EMA)

Resistance levels - 111, 111.31 (200-DMA), 111.82 (Aug 29, 2018 high)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.