- USD/JPY catches fresh bids after bearish gap down open after better-than-expected Japan trade data.
- The data released today showed a rise in the Japanese trade deficit to JPY 1,086.9 billion in January.
- However, negative treasury yields likely to cap major upside attempts in the major.
- USD/JPY has been trading a narrow range, with day's high of 113.18 and low of 112.79.
- Upside finds major resistance at 20-DMA, while downside remains supported by major trendline at 112.85.
- Technical studies do not show clear direction. Decisive break below major support at 112.85 could accentuate weakness.
Support levels - 112.85 (trendline), 112, 111.60 (Feb 7 low), 111.16 (100-DMA)
Resistance levels - 113.27 (20-DMA), 113.50 (5-DMA), 114
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Bullish Neutral
1D Neutral Neutral
1W Bearish Neutral
Recommendation: Watch out for break below trendline at 112.85 to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 44.9364(Neutral), while Hourly JPY Spot Index was at 89.9986 (Bullish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
