FxWirePro: USD/JPY spikes post hawkish FOMC, breaks 200-DMA, on track to test major trendline resistance at 112.95

• US Dollar surged post FOMC as market re-adjusts Fed rate hikes pricing after hawkish Fed.
   
• Markets now pricing an almost 70% chance of a Fed rate hike in Dec vs 46% pre-statement release.
   
• USD/JPY spiked through the 112 handle, to hit 112.53, highest since July 18th.
   
• The pair managed to close just above 200-DMA and is extending gains above.
   
• Technicals support higher, the major is on track to test major trendline resistance at 112.95.
   
• We see weakness only on retrace back below 200-DMA. Scope then for test of cloud top 111.60.

Support levels - 112.18 (200-DMA), 111.72 (5-DMA), 111.60 (cloud top)

Resistance levels - 112.95 (trendline), 114.32 (61.8% Fib retracement of 118.662 to 107.318 fall), 114.36 (double top)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-struggles-at-cloud-top-break-above-eyes-200-DMA-at-11221-906112) has hit all targets.

Recommendation: Book partial profits at highs. Raise stops to 112, hold for 112.95/ 113.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 42.3891 (Neutral), while Hourly JPY Spot Index was at -88.7385 (Bearish) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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