- USD/JPY has filled the bearish gap open and edged higher to trade at 113.35 at the time of writing.
- The pair has paused 2 consecutive sessions of losses but bias lower as long as upside remains capped below 5-DMA.
- Momentum indicators are at overbought levels and on verge of a rollover.
- Downside finds strong support at 112.96 (100-DMA), break below will see extension of weakness.
- Friday's dismal US economic data monthly retail sales and CPI dampened rate hike expectations.
- Also renewed geopolitical tensions after reports of N.Korea's new missile test on Sunday keep JPY demand intact.
- The major likely to see further gains only on break above 5-DMA at 113.77. While break below 100-DMA could see drag lower.
Support levels - 112.96 (100-DMA), 112.80 (cloud top), 112.15 (38.2% Fib)
Resistance levels - 113.77 (5-DMA), 114, 114.37 (May 10,11 highs)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -4.66881 (Neutral), while Hourly JPY Spot Index was at 27.4009 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
