FxWirePro: USD/JPY fails at major trendline resistance, Doji formation raises cope for weakness

• USD/JPY fails to extend bullish gap open, slips lower from session highs at 110.73 to trade 0.15% lower at 110.47.
   
• Upside in the pair was capped at major trendline resistance at 110.90 on Friday's trade.
   
• Further we evidence a Doji formation at highs which raises scope for weakness in the pair.
   
• Stochs are in overbought territory which is a cause for caution, some pullback possible.
   
• 200-DMA at 110.21 is major support on the downside. Break below will see extension of downside.
   
• Scope then for test of daily cloud at 108.83. Violation there could see further downside.
   
• On the upside, the pair needs to break above major trendline resistance at 110.90 for further upside.

Support levels - 110.21 (200-DMA), 110

Resistance levels - 110.90 (trendline), 111

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 32.1995 (Neutral), while Hourly JPY Spot Index was at 89.4942 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.