FxWirePro: USD/JPY capped below 5-DMA at 111.34, extends range trade between 100 & 200 day MAs

• USD/JPY is extending gains above the 111 handle, remains capped at 5-DMA at 111.35.
   
• Yen largely ignores BOJ’s Summary of Opinions' for the June 15th and 16th meeting, which suggested that the Japanese economy has been turning toward a moderate expansion.
   
• Technical indicators are inconclusive, but remain within a positive territory.
   
• The major seems to have been capped between 100 and 200 day MAs. Breakout of range trade will decide further direction.
   
• Strong support seen at 200-DMA at 110.70, break below will raise scope for downside. Confirmation on Stochs rollover and RSI below 50 will add to downside bias.
   
• Focus this week on US Markit preliminary June PMIs and May New Home Sales for further impetus.
   

Support levels - 111, 110.79 (200-DMA), 110, 109.77 (June 13 low), 109.20 (trendline)

Resistance levels - 111.77 (nearly converged 100-DMA & cloud top), 112, 112.15 (38.2% Fib of 118.662 to 108.130 fall)

Recommendation: We prefer to wait for clear directional bias.

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