FxWirePro: USD/JPY closes bearish gap open, bulls on track to test 200-W SMA at 113..24

• USD/JPY has resumed gains after staging a brief correction on Friday's trade.
   
• USD was dented after University of Michigan Consumer Sentiment Index eased to 97.1 in July, missing market expectation of 98.2. 
   
• UST 10-year yield on Friday lost nearly 1% to drop to its lowest level of the week adding to pressure on the pair. 
   
• The major opened this week's trade with a bearish gap, but has quickly recovered losses.
   
• Price is currently 0.13% higher on the day at 112.47 at the time of writing.
   
• Momentum studies are bullish. We see scope for test of 200-W SMA at 113.24.
   
• Next major resistance is seen at 113 levels. While 5-DMA is immediate support on the downside at 112.07.

Support levels - 112.07 (5-DMA), 111.18 (5W SMA), 111

Resistance levels - 112.57 (78.6% Fib), 113, 113.24 (200W SMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-spikes-past-112-handle-as-yen-loses-safe-haven-appeal-eyes-786-Fib-at-11257-1401951) has hit TP1.

Recommendation: Bias higher. Hold for 113/ 113.20.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -21.6703 (Neutral), while Hourly JPY Spot Index was at -105.466 (Bearish) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.