- USD/JPY tracks UST yields lower, closes a bullish gap up open.
- Upside in the pair has once again failed just shy of 113 handle.
- The major finds stiff resistance by channel top at 113 levels, upside only on break above.
- Momentum indicators are in overbought zone and 4H charts are showing a bearish RSI divergence.
- Rollover of RSI and stochs from overbought zone with a close below 5-DMA currently at 112.47 will see test of 111 levels.
Support levels - 112.47 (5-DMA), 112, 111.60 (minor trendline), 111.07 (38.2% Fib of 98.787 to 118.662 rally)
Resistance levels - 113 (psychological level & channel top), 113.97 (23.6% Fib), 115.50 (Mar 10 high)
Recommendation: Watch for confirmation on technicals to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -17.173 (Neutral), while Hourly JPY Spot Index was at 23.0676 (Neutral) at 1050 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
