FxWirePro: "Bullish Bat" pattern formed on USD/JPY, good to go long on dips

• USD/JPY has completed a 'Bullish Bat' pattern, scope for further upside seen.
  
• US dollar strengthened post FOMC meeting. Fed said they expect economic conditions to evolve in a manner that will warrant further rate hikes.
  
• After consolidating breach of slopping channel seen last week, the major failed to extend downside.
  
• RSI and Stochs have rolled over from oversold territory raising scope for upside.
  
• Price action has broken above 5-DMA at 109.00 and is currently hovering around 23.6% Fibo.
  
• Next bull target lies at 110.37 (nearly converged 38.2% Fib and 21-EMA) ahead of 20-DMA at 110.56.
  
• On the downside we see immediate support at 5-DMA, breach there will see resumption of downside.
  
• Focus now on nonfarm payrolls, ISM manufacturing PMI for further impetus.

Support levels - 109 (5-DMA), 108.60 (Aug 18 low), 108.26 (Aug 29 low)

Resistance levels - 109.57 (23.6% Fib 113.572 to 108.282 fall), 110, 110.37 (nearly converged 38.2% Fib and 21-EMA)

Recommendation: Good to go long on dips around 109.45, SL: 108.90, TP: 110/ 110.35/ 110.50.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 10.6963 (Neutral), while Hourly JPY Spot Index was at -131.879 (Bearish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.​

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