- USD/JPY dumped in Asian session, slips below 5-DMA, intraday bias bearish.
- Trump's failure to deliver something concrete in respect to economic reforms in his inauguration speech weighs on USD.
- The pair has recovered from session lows at 113.44 to currently trade at 113.59.
- Technical indicators are bearish, we see scope for test of 112.60 levels.
- The pair is trading well below 50-DMA and price action has dipped into daily cloud.
- Support levels - 112.60 (Jan 17 low), 112, 111.35 (Nov 28 low)
- Resistance levels - 113.97 (23.6% Fib retrace of 98.78 to 118.66 rally), 114.05 (5-DMA), 114.76 (50-DMA)
Recommendation: Good to go short on rallies around 113.90, SL: 114.75, TP: 112.60/ 112/ 111.35
