- USD/JPY rejected at 20-DMA on Monday's trade, bias lower.
- The pair has broken major trendline support at 110.10 and we see scope for test of 200-DMA at 108.54.
- The major is trading in a narrow range, made a high of 109.75 and a low of 109.34.
- Technical indicators on weekly charts are highly bearish. We see bearish invalidation only on close above trendline support turned resistance at 110.10.
Support levels - 109.80 (Nov 18 low), 108.72 (50% Fib retrace of 98.78 to 118.66 rally), 108.53 (200-DMA)
Resistance levels - 110, 110.10 (trendline), 110.41 (5-DMA), 111
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Neutral Neutral
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short on rallies around 109.75, SL: 110.50, TP: 109/ 108.75/ 108.55
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -53.34 (Neutral), while Hourly JPY Spot Index was at 80.6023 (Bullish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
