- USD/JPY failed to extend gains beyond 114 handle and slipped lower to close at 113.43 on Monday.
- The major consolidated the post-election gains, is ranging sideways on the day.
- Muted reaction seen in JPY after Japan Nikkei manufacturing PMI failed to meet expectations.
- Japan October Nikkei manufacturing PMI (flash) decreased to 52.5 vs previous 52.9 and consensus 53.1.
- The major finds strong support at 113.15 (5-DMA), break below will see some weakness.
- USD to remain underpinned after Trump announced that he is very close to making a decision on who the next Fed chair will be.
- Technical bias remains higher. The pair has broken major trendline resistance at 113.20 raising scope for further upside.
- Weekly 200-SMA is strong support at 111.89, we see weakness only on close below.
- On the upside, next target for bulls lies at 114.50 (July 2017 highs) ahead of 115.51 (61.8% Fib retrace of 125.85 to 98.78 fall).
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 31.8263 (Neutral), while Hourly JPY Spot Index was at -15.2646 (Neutral) at 0245 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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