FxWirePro: USD/JPY trades below 112 handle, dip till 38.2% Fib at 110.76 likely

USD/JPY chart on Trading View used for analysis

• USD/JPY opened the week's trade with a bearish gap, bias lower.
   
• The pair has slipped below 112 handle and is trading 0.26% lower on the day.
   
• Upside remains capped at 5-DMA and the pair has slipped below 55-EMA.
   
• We see scope for test of lower Bollinger Band at 111.56. Further weakness will see drag till 38.2% Fib at 110.79.
   
• On the data front, focus shall be on U.S. retail sales, JOLTS, Industrial production and housing starts.
   
• FOMC minutes will be watched for longer-term topics such as alternate monetary policy frameworks and the balance sheet. 

Support levels - 111.55 (lower BB), 111.30 (110-EMA), 110.76 (38.2% Fib)

Resistance levels - 112.30 (5-DMA), 112.65 (21-EMA), 112.97 (20-DMA)

Recommendation: Stay short below 55-EMA, SL: 112.30, TP: 111.55/ 111/ 110.76

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