USD/JPY chart on Trading View used for analysis
- Improved risk sentiment following positive Brexit news is supporting USD/JPY.
- Irish Foreign Minister Coveney said that there is a strong chance of reaching Brexit deal, but cautioned that Nov looks ‘more likely’ than Oct for a Brexit deal.
- The pair is trading above 113 handle, in an extremely tight range. Finds strong support at 20-DMA at 112.98.
- However, technical indicators on daily charts have turned bearish. Stochs are sharply lower.
- RSI is biased lower and MACD shows a bearish crossover on signal line. Break below 20-DMA support will see continuation of weakness.
- US CPI due on Thursday will be in focus for further impetus.
Support levels - 112.98 (20-DMA), 112.20 (23.6% Fib), 112.05 (55-EMA)
Resistance levels - 113.35 (5-DMA), 114, 114.55 (Oct 4 high)
Recommendation: Stay short on decisive break below 20-DMA, SL: 113.70, TP: 112.20/ 112/ 111.30
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -74.1573 (Neutral), while Hourly JPY Spot Index was at 106.77 (Bullish) at 0345 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
