FxWirePro: USD/JPY continues with a clear upside bias, hits fresh 6-month highs at 112.77

• US  headline CPI inflation printed at a modest 0.129% m/m in June, below expectations at 0.2%. Core CPI rose 0.16% m/m, broadly in line with expectations.
   
• USD/JPY pull-back post CPI disappointment found support at 112.36 levels, edges higher with a clear upside bias. 
   
• The pair was largely unaffected by recent comments from Fed’s Chair Jerome Powell who said that he is hearing a rising level of concerns about the effects of changes in trade policy.
   
• Technical indicators are bullish on daily charts. We see scope for further upside.
   
• 50-DMA on verge of a bullish crossover on 200-DMA - a possible 'Golden Cross' formation, which could boost bullish bias. 
   
• Next bull targets align at 113.22 the 200W SMA ahead of 113.58 (88.6% Fib) and then 114.50 July 2017 high.

Support levels - 112.54 (1H 20 SMA), 112, 111.80 (5-DMA)

Resistance levels - 113, 113.22 (200W SMA), 113.58 (88.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-spikes-past-112-handle-as-yen-loses-safe-haven-appeal-eyes-786-Fib-at-11257-1401951) has hit TP1.

Recommendation: Book partial profits. Hold for further upside.