FxWirePro: USD/JPY hovers around 20-DMA at 112.60, dollar subdued as US tax bill stumbles

• US dollar subdued after the US tax bill vote was postponed on account of a procedural issue.
   
• Resilient treasury yields keep downside limited, uptick could help the USD regain some poise.
   
• At the time of writing, USD/JPY was trading at 112.58, just below 20-DMA at 112.60.
   
• Technical studies are turning bullish. Stochs have shown a rollover from oversold levels and RSI are biased higher.
   
• The pair has broken above weekly 200-SMA at 111.67 and now finds next resistance at weekly 5-SMA at 112.73 ahead of 50-DMA at 112.80. 
   
• Decisive close above 50-DMA could see further upside, scope then for test of 113.44 (Oct 6 high).

Support levels - 112 (psychological level), 111.90 (converged 5-DMA & 38.2% Fib), 111.57 (100-DMA)

Resistance levels - 112.73 (weekly 5-SMA), 112.90 (50-DMA), 112.98 (23.6% Fib retrace of 107.31 to 114.73 rally))

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 11.7902 (Neutral), while Hourly JPY Spot Index was at -95.6729 (Bearish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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