- FOMC's neutral/hawkish stance dented the dollar and yields dropped, dragging USD lower.
- USD/JPY consolidating above 111.50 handle, momentum studies neutral.
- Cloud weighs on the upside, break above will find stiff resistance at 20-DMA at 112.42.
- On the flipside, 109.75 (converged 200-DMA and trendline) is major support.
Support levels - 111 (May 19 low), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 109.75 (200-DMA & trendline)
Resistance levels - 112, 112.15 (38.2% Fib), 112.42 (20-DMA)
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -57.0686 (Neutral), while Hourly JPY Spot Index was at -128.62 (Bearish) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
