- USD/JPY struggles to break through 112.00 handle, trades a narrow range on the day.
- The major consolidating Tuesday's recovery as markets await FOMC meeting minutes.
- Any indication that the Federal Reserve refrains from adopting aggressive rate-tightening cycle will trigger a fresh bout of weakness.
- Technical indicators are mildly bullish, RSI and Stochs are biased higher.
- The pair is trading in a symmetrical triangle pattern and a breakout could provide clear directional bias.
- 20-DMA at 112.42 is strong resistance on the upside, while 109.75 (converged 200-DMA and trendline) is major support.
Support levels - 111 (May 19 low), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 109.75 (200-DMA & trendline)
Resistance levels - 112, 112.15 (38.2% Fib), 112.42 (20-DMA)
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -10.06 (Neutral), while Hourly JPY Spot Index was at -113.161 (Bearish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
