- USD/JPY trades range bound, continues with its struggle to decisively break through weekly trading range.
- Mild positive bias extends for the second straight session. Positive trading sentiment in Asian equity markets offset by anxiety ahead of crucial French Presidential elections on Sunday.
- Focus on weekly jobless claims and Philly Fed Manufacturing Index for short-term trading impetus.
- Below 200-DMA, the major finds strong support at 107.90 (channel base), weakness only on break below.
- Violation at channel base could see test of 107.86 (61.8% Fib retrace of 101.19 to 118.662 rally).
- RSI has rolled over from oversold levels, but we do not see Stochs and MACD supporting upside.
- Support levels - 108.73 (200-DMA), 10.7.90 (channel base), 107.86 (61.8% Fib), 107.77 (Nov 15, 2016 low)
- Resistance levels - 109.17 (session high), 110, 110.19 (20-DMA), 111. (38.2% Fib retrace of 98.78 to 118.66 rally)
Recommendation: For lack of clear directional bias, we prefer to remain on the sidelines.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -75.715 (Bearish), while Hourly JPY Spot Index was at -71.16 (Bearish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
