FxWirePro: USD/JPY breaks 1H 100-SMA support, good to short rallies

• Bank of Japan held rates as widely expected and Governor Kuroda in the statement that followed said that the policy switch to yield curve control is working well.
   
• The Japanese cabinet office also upgraded its view of the economy, noting that the economy is in moderate recovery.
   
• It was the first upgrade since March 2015 and has kept the yen buoyed against the greenback.
   
• USD/JPY slips below 5-DMA at 117.72 and has broken 1H 100-SMA support at 117.75.
   
• We see scope for test of 117 levels, bearish invalidation above 118.
   
• Support levels - 117.55 (session low), 117, 116.98 (Dec 20 low)
   
• Resistance levels - 117.72 (5-DMA), 117.75 (1H 100-SMA), 118, 118.42 (Dec 16 high)
   

Recommendation: Good to short rallies around 117.70/75, SL: 118.20, TP: 117.55/ 117
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FxWirePro's Hourly USD Spot Index was at 16.9643 (Neutral), while Hourly JPY Spot Index was at 109.039 (Highly bullish) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.