FxWirePro: USD/JPY recovers from dip just ahead of 116 handle, close below 20-DMA will confirm further weakness

Technical Analysis:

- USD/JPY has recovered from session lows just shy of 116 handle.
- The pair has held above 20-DMA at 116.30, close below will confirm further downside.
- RSI and Stochs have rolled over from overbought zone.
- MACD has shown a bearish crossover on signal line.

Important Levels:

Support levels - 116.30 (20-DMA),  116.04 (session low), 116
Resistance levels - 116.96 (5-DMA), 117, 117.25 (Dec 29 high), 117.81 (Dec 28 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Bearish-bias-builds-in-USD-JPY-good-to-short-rallies-467536) has achieved all targets.

Recommendation: Book full profits at lows. We had adviced a short call on close below 20-DMA, target 115/ 114.75.

FxWirePro Currency Strenght Index: FxWirePro's Hourly USD Spot Index was at -133.236 (Highly bearish), while Hourly JPY Spot Index was at -33.7656 (Neutral) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.