- USD/JPY edges lower from fresh four-week highs near 111.80 levels in the Asian session, bias still higher.
- Hawkish comments from the FOMC member Dudley overnight buoyed the dollar.
- Dudley said that he is confident US inflation will rebound and Fed remains on track to raise interest rates in the coming months.
- On the other hand, last week BoJ held interest rate unchanged in a 7-2 vote and reaffirmed continuation of its yield curve control policy.
- Monetary policy divergence between the Fed and BOJ also remains a big positive for the pair.
- Focus on upcoming Fedspeaks later today for further impetus. Upside intact as long as pair holds above 200-DMA.
- Technical indicators for the pair support upside, break above cloud base at 111.81 could see further upside.
Support levels - 111, 110.91 (5-DMA), 110.69 (20-DMA)
Resistance levels - 111.48 (100-DMA), 112, 112.15 (38.2% Fib of 118.662 to 108.130 fall)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-consolidates-break-above-200-DMA-bias-higher-761734) has hit TP1&2.
Recommendation: Bias higher. Book partial profits at highs, hold for 112/ 112.15/ 112.95
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 50.8685 (Bearish), while Hourly JPY Spot Index was at -58.9738 (Neutral) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
