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FxWirePro: USD/JPY holds major support at 109.80, weakness only on break below

USD remains bid as markets digest hawkish speeches from the Fed officials, Fed’s Powell suggested overnight that Fed should raise rates ‘fairly soon’. JPY also remained buoyed amid ongoing chatter that Japan’s PM Abe wil…

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FxWirePro: USD/JPY holds major support at 109.80, weakness only on break below
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  • USD remains bid as markets digest hawkish speeches from the Fed officials, Fed’s Powell suggested overnight that Fed should raise rates ‘fairly soon’. 
     
  • JPY also remained buoyed amid ongoing chatter that Japan’s PM Abe will soon announce delay in sales tax hike.
     
  • USD/JPY is holding above major support around 109.80 levels (4H 5SMA @108.80, 10SMA @108.81 and  50SMA @108.78). Break below could see test of 109.55 (trendline support).
     
  • On the upside, major resistance is seen at 110 (Trendline joining 110.45 and 110.20). Break above could see gains upto 110.35 and then 110.44.
     
  • Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-finds-stiff-resistance-at-10995-good-to-sell-rallies-213300) has hit all targets.
     
  • Focus now remains on the US GDP numbers and Fed Chair Yellen’s speech, especially after we had weaker durable goods orders release a day before.
    ​

Recommendation: Buy breakout above 110, SL: 109.80, TP:110.35/110.45. Sell break below 109.80, SL: 110, TP: 109.55/109.40
 

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