- 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.
