FxWirePro: USD/JPY hits monthly high at 112.07, bias higher as long as pair holds 100-DMA support

• USD/JPY spiked higher on Monday, largely ignoring dismal US durable goods orders data and regional manufacturing data.
   
• Durable goods orders fell by 1.1% m/m in May, missing expectations at -0.6%.
   
• Dollar initially edged lower but quickly recovered ground on fears that the Fed may continue to push forward with policy normalization as suggested by the Bank for International Settlements (BIS).
   
• The BIS over the weekend asked major central banks to go ahead with the policy normalization, given the global economy looks stable.
   
• USD/JPY spiked past 100-DMA resistance at 111.79 to hit monthly highs of 111.94 on Monday.
   
• The pair extended gains in the Asian session today to hit monthly highs of 112.07 before edging lower to currently trade at 111.91.
   
• Technical indicators have turned slightly bullish within the positive territory. We see upside intact as long as pair holds above 100-DMA support.
   

Support levels - 111.79 (100-DMA), 111.53 (5-DMA), 110.84 (200-DMA)

Resistance levels - 112, 112.15 (38.2% Fib of 118.662 to 108.130 fall), 112.75 (trendline)

Recommendation: Good to go long on dips around 111.75/80, SL: 111.15, TP: 112/ 112.15/ 112.75/ 113

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -88.4217 (Bearish), while Hourly JPY Spot Index was at -120.706 (Bearish) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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