FxWirePro: USD/JPY retraces below 112 mark, bias higher, stay long on close above 112

• USD/JPY on Thursday erased lower-than-expected US CPI reading led losses, spiked higher to hit 6-week highs at 112.06.
   
• Bulls struggling at the time of writing, retrace below 112 handle to currently trade at 111.84.
   
• Technical studies are biased higher. Momentum indicators are bullish, RSI holds above 50 mark.
   
• Price action is above major EMAs and has broken strong resistance at 111.65. 
   
• We see scope for test of 78.6% Fib on close above the 112 handle. The pair could take out 113.17 on further bullishness.
   
• On the flip side, break below 100-DMA will negate bullish bias. 
   
• Focus now turns towards the US retail sales, industrial production and prelim UoM consumer sentiment data for fresh impetus. 

Support levels - 111.55 (5-DMA), 111, 110.87 (61.8% Fib)

Resistance levels - 112.57 (78.6% Fib), 113, 113.17 (July 19 high)

Recommendation: Good to go long on close above 112, SL: 111.50, TP: 112.55/ 113/ 113.15

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -92.1325 (Bearish), while Hourly JPY Spot Index was at -124.812 (Bearish) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.