FxWirePro: USD/JPY rangebound below 5-DMA (109.06), awaits fresh impulse from US core PCE inflation

• Demand for Yen eases as the political turmoil in Italy eased as parties push forward to try to form a government.
   
• Weaker US ADP report on private sector employment and a downward revision of the Q1 GDP growth figures exerted some downward pressure on the already weaker US Dollar.
   
• Markets now await fresh impulse from core PCE inflation later on Thursday ahead of the US non-farm payroll report on Friday.
   
• USD/JPY recovered from new 4-week lows at 108.11, is currently trading at 108.89.
   
• Upside remains capped below 5-DMA at 109.06, break above could see further upside.
   
• Technically, the pair trades with a major bearish bias, scope for further downside.
   
• Currently we see strong support at 100-DMA at 108.14, break below to see further weakness.

Support levels - 108.35 (50-DMA), 108.14 (100-DMA), 108, 107.65 (Apr 23 low)

Resistance levels - 109.06 (5-DMA), 109.80 (23.6% Fib), 110

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -90.3025 (Bearish), while Hourly JPY Spot Index was at -9.61339 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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