FxWirePro: USD/JPY bias turns bearish on dip below 5-DMA, good to sell rallies

• USD/JPY struggles to extend gains beyond 114.82 (Dec 1 highs), fails to claim 115 handle.
   
• Intraday bias in the pair has truned bearish on dip below 5-DMA at 113.71.
   
• RSI and Stochs are at overbought levels and are seeing a turn. MACD has shown a bearish crossover on the signal line.
   
• Rollover of RSI and Stochs from overbought levels would confirm downside in the major.
   
• The pair has broken below 1H 200-SMA and major trendline support at 113.50.
   
• We see scope for test of 20-DMA at 111.82. Bearish invalidation on close above 5-DMA at 113.71.
   
• Support levels - 113, 112.86 (Dec 5 low), 112, 111.80 (20-DMA)
   
• Resistance levels - 113.42 (10-DMA), 113.66 (5-DMA), 114
   

Recommendation: Good to sell rallies around 113.35/45, SL: 114, TP: 113/ 112.85/ 112.50/ 112
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FxWirePro's Hourly USD Spot Index was at -62.1098 (Slightly bearish), while Hourly JPY Spot Index was at 81.0308 (Slightly bullish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.