FxWirePro: USD/JPY breaks major trendline resistance at 112.75, hits 11-week high at 113.25

• USD/JPY has broken major trendline resistance at 112.75, bias still higher.
   
• The major has hit fresh 11-week highs at 113.25 before paring some gains to close at 112.80 on Wednesday.
   
• The pair is currently hovering around 113 handle, we see scope for further upside.
   
• Trump's pro-growth tax cut plan was largely a non-event with little reaction from the markets.
   
• More constructive outlook on the Fed's tightening path keeps USD buoyed.
   
• Technical studies are bullish, RSI and Stochs are biased higher. MACD supports trend higher.
   
• Next major resistance seen at 114.32 (61.8% Fib retracement of 118.662 to 107.318 rally).
   
• 200-DMA at 112.05 is strong support on the downside, weakness likely on break below.

Support levels - 112.35 (5-DMA), 112.05 (200-DMA), 111.65 (38.2% Fib retracement of 118.662 to 107.318 rally)

Resistance levels - 113.25 (Sept 27th high), 114, 114.32 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-takes-cloud-support-regains-200-DMA-at-11207-bias-higher-920782) has hit TP1&2.

Recommendation: Bias higher. Book partial profits, raise trailing stop to 112, hold for 113.90/ 114/ 114.30.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 162.397 (Bullish), while Hourly JPY Spot Index was at -31.746 (Neutral) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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