FxWirePro: USD/JPY breaks major trendline resistance at 114.25, good to long dips

• USD/JPY has broken major trendline resistance at 114.25, bias higher.
   
• The pair finds stiff resistance upto 115.15 levels, breakout above will confirm upside.
   
• Technical studies are bullish. Stochs have rolled over from oversold and RSI is biased higher.
   
• MACD is on verge of a bullish crossover on signal line, which if happens will add to upside bias.
   
• Yen weak across the board after BoJ crushed markets expectation for tapering QE at its next policy review meeting.
   
• USD/JPY is currently struggling to get past 115.15 level. Risk averse can wait for breakout to go long.
   
• Those with more risk appetite can go long on dips, with strict stop loss.
   

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish            Overbought
    
4H          Bullish            Neutral       

1D          Bullish            Neutral        

1W         Bullish            Neutral  

Support levels - 114.39 (session low), 114 (trendline resistance turned support), 113.87 (5-DMA)

Resistance levels - 115.15 (cloud top), 115.62 (Jan 19 high), 116, 116.12 (Dec 12 high)

Recommendation: Good to go long on dips around 114.50, SL: 113.85, TP: 115/ 115.60/ 116 

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 39.2165(Neutral), while Hourly JPY Spot Index was at -147.205 (Highly Bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.