FxWirePro: USD/JPY rangebound, remains capped between 100 and 200 DMAs, bias neutral

• USD/JPY is extending range trade on the day, made a high of 111.42 and a low of 111.15.
   
• The major seems to have been capped between 100 and 200 day MAs. Breakout of range trade will decide further direction.
   
• Japanese yen remains largely resilient to a negative surprise in Japanese manufacturing PMI data.
   
• Japan flash manufacturing PMI drops to 7-month lows in June, data released earlier today showed.
   
• US manufacturing and services PMIs, followed by the new home sales data and speech by the FOMC member Powell will be watched for impetus.
   
• The major finds strong support at 200-DMA at 110.70, break below will raise scope for downside.
   
• Confirmation on Stochs rollover and RSI below 50 will add to downside bias.

Support levels - 110.74 (200-DMA), 110, 109.77 (June 13 low), 109.20 (trendline)

Resistance levels - 111.80 (100-DMA & cloud top), 112, 112.15 (38.2% Fib of 118.662 to 108.130 fall)

Recommendation: Wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -46.9365 (Neutral), while Hourly JPY Spot Index was at -37.1819 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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