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FxWirePro: USD/JPY breaks trendline support at 112.95, good to sell rallies

USD/JPY has been sold off heavily overnight on a broad based run on the greenback after Yellen's speech. The pair broke strong trendline support at 112.95 and has edged lower to hit session lows at 112.40 on the day. 112…

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FxWirePro: USD/JPY breaks trendline support at 112.95, good to sell rallies
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  • USD/JPY has been sold off heavily overnight on a broad based run on the greenback after Yellen's speech.
     
  • The pair broke strong trendline support at 112.95 and has edged lower to hit session lows at 112.40 on the day.
     
  • 112.40 is 10-DMA and strong support on the downside, breaks below could see test of 112.20 and then 112 levels.
     
  • Expectations on the rise for the Bank of Japan to decide on a significant monetary easing at its April 2016 meeting. 
     
  • The pair finds immediate support at 112.40 (session lows and 10-DMA), while resistance on the upside is seen at 112.90 (5-DMA).
    ​

Recommendation: Good to sell rallies around 112.60, SL: 113, TP: 112.20/112/111.65
 

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