, bearish divergence and Cypher formation keep scope for further downside - EconoTimes)
- USD/JPY edges higher from 9-day lows at 108.64, trades 0.23% higher on the day.
- Persisting US dollar strength seen across the board, as the USD bulls continue to cheer stronger US fundamentals.
- Latest US jobs data added to the signs of a strengthening US economy keeping the Fed on track to hike the interest rates in June.
- Fedspeaks in focus amid lack of fresh catalysts from the US docket.
- 'Bearish Cypher' formation on daily charts keeps scope for further downside. We also evidence bearish divergence on Stochs which adds to the bearish bias.
- The major finds strong support at 100-DMA at 108.67. Break below sees further weakness.
- On the flipside 5-DMA is immediate resistance at 109.44. Break above to see next major resistance at 110.18 (200-DMA)
Support levels - 108.67 (100-DMA), 108.49 (38.2% Fib), 108.33 (20-DMA)
Resistance levels - 109.44 (5-DMA), 109.68 (50% Fib), 110, 110.18 (200-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 114.055 (Bullish), while Hourly JPY Spot Index was at 145.892 (Bullish) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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