FxWirePro: USD/JPY holds above 118 handle, 5-DMA at 118.57 caps upside

USD/JPY failed to hold at higher levels and slipped despite a relief rally in the Asian indices, especially with a positive opening in China's stock markets supported risk-on environment.

• The pair still holds above the 118 handle and is trying to stabilize above the hourly 50-SMA support placed at 118.18.
   
• Stochs on 4hourlies have rolled over from oversold zone with a bullish crossover, MACD also gives a buy on the 4Hourly charts.
   
• A close above 118.30 (major support turned resistance) with support from momentum indicators could see regain of 120 levels. 
   
• On the other side a close below 117.72 will take the pair to 116 and then 115.60 levels.

Recommendation: We will wait for confirmation to go long