- USD/JPY extends gains on the day after FOMC hiked rates Wednesday and called for one more hike this year alongside balance sheet normalization.
- The pair finds major resistance at 110.20 (trendline) and we see upside continuation on decisive break above.
- 200-DMA at 110.47 is next major resistance above 110.20, violation there will see test of 110.80 (June 9 high).
- Technical indicators are not conclusive, RSI has taken a turn north, but remains below 50 level and MACD still bias lower.
Support levels - 110.01 (5-DMA), 110, 109.11 (June 7th low), 108.85 (trendline)
Resistance levels - 110.47 (200-DMA), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 110.67 (20-DMA)
Recommendation: Watch out for decisive break above 110.20 with confirmation from RSI above 50 to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 38.5604 (Neutral), while Hourly JPY Spot Index was at -89.3404 (Bearish) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
