FxWirePro: USD/JPY consolidates gains around 88.6% Fib, Focus on US ADP and ISM services PMI for further impetus

USD/JPY chart on Trading View used for analysis

• Receding Italian debt fears after reports that Italy will cut its budget deficit at a faster pace than expected denting demand for the yen, pushing the pair higher.
   
• USD/JPY extends gradual grind higher, but is struggling to extend gains beyond 114 handle.
   
• The pair is extending gains for the 4th straight week. Technical studies are highly bullish.
   
• Price action has broken major resistance at 200W-SMA, we see scope for further gains. 
   
• Next major bull target lies at 115.30 (trendline resistance). Further bullishness only on break above.
   
• 5-DMA is immediate support at 113.67, while major support lies at 111.08 (100-DMA).
   
• ADP report on private sector employment, followed by the ISM non-manufacturing PMI will be in focus for further impetus.

Support levels - 113.67 (5-DMA), 113.17 (200W SMA), 112.62 (21-EMA)
Resistance levels - 114, 114.74 (Nov 6 2017 high), 115, 115.30 (trendline)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-hits-11-month-highs-at-11396-positive-momentum-to-continue-11530-in-sight-1436201) has hit TP1.

Recommendation: Watch out for break above 114 handle for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 129.069 (Bullish), while Hourly JPY Spot Index was at 43.1003 (Neutral) at 1115 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.