Markets likely calmed by higher than expected Chinese CPI figures, risk-on back.
- USD/JPY rallied to hit session highs at 113.80, but upside likely struggling at strong trendline resistance (113.80).
- The pair has edged slightly lower and is currently holding at 113.77 levels, breaks above 113.80 could see 114.25 and then 114.55 levels.
- Supports on the downside are located at 114.46 (10-DMA) and further below at 113.37 (5-DMA).
- Next immediate resistance is seen at 113.80 (session highs and trendline), and then at 113.92 (Mar 7th highs).
Recommendation: Buy breakout above 113.80, SL: 113.30, TP: 114.25/55
