Technical Studies:
- USD/JPY has held above 50-DMA support at 113.59, we see further weakness only on break below.
- The pair has at the time of writing reclaimed the 115 handle. Trend remain lower, some consolidation likely at current levels.
- The has broken major trendline support at 115.45, upside remain capped by 5-DMA at 115.77.
- Break below 50-DMA could see drag till 111 levels.
- On the flipside, bearish invalidation only on close above 20-DMA at 116.70.
Fundamental Factors:
- Fed focus is on low unemployment, while keeping inflation low and stable, Yellen said at a meeting overnight..
- The Fed chair made no commenst regarding the economic or policy outlook in her speech at a 'town hall' meeting.
- Divergence between the BoJ and the Fed monetary policies to keep downside capped.
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Bearish Neutral
1W Neutral Neutral
Call Update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-trade-idea-short-rallies-for-114-485054) has achieved all targets.
Support levels - 114.25 (Jan 11 low), 114, 113.97 (23.6% Fib of 98.78 to 118.66 rally), 113.56 (50-DMA)
Resistance levels - 115, 115.37 (5-DMA), 116, 116.70 (20-DMA)
Recommendation: We prefer to wait for clear intarday signal.
