FxWirePro: USD/JPY breaks below 100-DMA, good to go short on rallies

• USD/JPY breaks below 100-DMA at 112.87, intraday bias lower.
   
• US dollar was broadly sold-off into the US political disarray and increased doubts over Trump’s ability to deliver on his campaign promises.
   
• Technical indicators have turned bearish, RSI and Stochs have rolled over from overbought levels.
   
• The major is on track to test 50-DMA at 111.65. Violation there could see test of 110.61 (23.6% Fib of 118.662 to 108.130 fall).
   
• On the weekly charts the pair finds stiff resistance at 113.12 (weekly 100-SMA), break above needed for further upside.

Support levels - 112.13 (20-DMA), 111.65 (50-DMA), 111, 110.61 (23.6% Fib of 118.662 to 108.130 fall)

Resistance levels - 112.87 (100-DMA), 113.31 (5-DMA), 114

TIME  TREND INDEX  OB/OS INDEX   

1H          Bearish               Neutral      

4H          Bearish               Oversold      

1D          Bearish               Neutral       

1W         Neutral               Neutral     

Recommendation: Good to go short on rallies around 112.65/75, SL: 113.35, TP: 112.15/ 111.65/ 111.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -144.124 (Bearish), while Hourly JPY Spot Index was at 56.6116 (Neutral) at 0450 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.