- USD/JPY struggles to extend bullish gap open, Doji formation seen on the daily candle.
- Price action hovers around 50-DMA at 112.81, further upside likely on decisive break above.
- Technical studies are biased higher, RSI points north and is gaining traction above 50 levels.
- Stochs are sharply higher and MACD is on verge of a bullish crossover on signal line.
- Break above 50-DMA finds next immediate resistance at 113.25 (61.8% Fib retrace of 114.737 to 110.843 fall).
- On the flipside, 20-DMA at 112.54 is immediate support, break below will see test of 5-DMA at 112.17 (5-DMA).
Support levels - 112.54 (20-DMA), 112.17 (5-DMA), 111.90 (38.2% Fib of 107.318 to 114.737 rally)
Resistance levels - 112.98 (23.6% Fib of 107.318 to 114.737 rally), 113.25 (61.8% Fib retrace of 114.737 to 110.843 fall), 113.91 (Nov 14 high)
Recommendation: Good to go long no decisive break above 50-DMA, SL: 112.15, TP: 113/ 113.25/ 113.90
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 18.6058 (Neutral), while Hourly JPY Spot Index was at -104.637 (Bearish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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