FxWirePro: USD/JPY breaks support at 112.50, good to sell rallies

• Doubt over OPEC output cut deal dented investors’ confidence in risky assets, boosting safe-havens JPY demand.
   
• USD/JPY extending decline from multi-month highs, hits session lows of 111.35. 
   
• The major is staging some recovery as we head towards the Asian session, but intraday bias lower.
   
• Technicals are bearish, spinning top formed at highs on Friday's trade. 
   
• We see scope for test of 20-DMA at 108.12, bearish invalidation on close above 5-DMA.
   
• Support levels - 111.35 (session low), 111, 110.33 (23.6% Fib), 108.12 (20-DMA & 38.2% Fib)
   
• Resistance levels - 112, 112.40 (5-DMA), 113, 113.89 (Nov 25 high)
   
• Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-trade-idea-419662) has achieved all targets.
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Recommendation: Good to sell rallies around 112/112.10, SL: 112.50, TP: 111.35/ 111/ 110.30

FxWirePro's Hourly USD Spot Index was at -22.5188 (Neutral), while Hourly JPY Spot Index was at -122.152 (Highly bearish) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex