- USD/JPY edges higher from session lows at 112.76, greenback recovers Trump-led losses.
- Spot regained upside momentum and rallied to test 4h 200-SMA barrier.
- Sentiment boosted by Trump’s $ 1 trillion boost to the infrastructure program and commitment to lower taxes for the benefit of the corporates.
- Technicals support upside in the pair. 4H charts show bullish RSI divergence. RSI and Stochs are biased higher.
- The pair has broken above 20-DMA on daily charts and we see scope for test of next major resistance at 113.80 (trendline).
Support levels - 112.98 (20-DMA), 112.72 (5-DMA), 112.05 (Feb 2 low)
Resistance levels - 113.80 (Falling trendline), 114, 114.30 (Feb 16 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Overbought
4H Bullish Neutral
1D Bullish Neutral
1W Neutral Neutral
Recommendation: Good to go long on dips around 113.30, SL: 112.70, TP: 113.80/ 114/ 114.30
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 59.4248(Slightly bullish), while Hourly JPY Spot Index was at 5.57178 (Neutral) at 0610 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
