FxWirePro: USD/JPY finds stiff resistance at 21-EMA, upside only on break above

USD/JPY chart on Trading View used for analysis

• USD/JPY trades 0.28% higher on the day at 109.68 at 0500 GMT.
   
• The pair retains its upside bias for the day after BoJ kept policy steady, as widely expected and cut CPI forecasts.
   
• The Japanese currency got sold-off post BoJ, supporting the pair higher.
   
• The major finds stiff resistance at 21-EMA which is capping upside from many sessions.
   
• Decisive break above will see further upside. Scope then for test of 61.8% Fib at 110.77.
   
• 20-DMA is strong support at 109.17, break below will see weakness till 108.43 (38.2% Fib)

Support levels - 109.53 (5-DMA), 109.17 (20-DMA), 108.43 (38.2% Fib)

Resistance levels - 109.64 (21-EMA), 110, 110.77 (61.8% Fib)

Recommendation: Stay long on decisive close above 21-EMA, SL: 109.50, TP: 110/ 110.75

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