FxWirePro: USD/JPY edges lower from session highs at 111.71, finds stiff resistance at 111.75

USD/JPY chart on Trading View used for analysis

• USD/JPY has broken out of range trade and spiked higher overnight after upbeat US ISM Manufacturing PMI data.
   
• US ISM Manufacturing PMI for August arrived at 61.3, much higher that the 57.7 expected.
   
• Upbeat data with a reinforced the case for two more rate hikes from the Federal Reserve this year, buoying the greenback across the board.
   
• USD/JPY closed above 5-DMA on Tuesday's trade and is extending upside in the Asian session today.
   
• Price action is attempting break above daily Ichimoku cloud and is holding above 61.8% Fib and 111 mark.
   
• Technical indicators has turned slightly bullish and break above 111.75 (trendline and upper BB) will see further upside.
   
• On the flip side, 61.8% Fib at 110.87 is immediate support ahead of cloud base at 110.64. Breach below to see further weakness.

Support levels - 111.20 (5-DMA), 110.87 (61.8% Fib), 110.64 (cloud base)

Resistance levels - 111.75 (trendline and upper BB), 112, 112.57 (78.6% Fib)

Recommendation: Good to go long on break above 111.75, SL: 111.20, TP: 112/ 112.55

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 145.191 (Bullish), while Hourly JPY Spot Index was at 18.1708 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.