- USD/JPY saw huge slump on Wednesday on dive in US treasury bond yields, amid intensifying political turmoil in the US.
- The pair recovers from fresh monthly lows at 110.52 supported by modest rebound in the US treasury bond yields.
- Traders shrugged off a better than expected first quarter GDP print from Japan.
- The major seems to have found some support at weekly 200-SMA at 110.56.
- We see further weakness only on break below. On the upside, close above 50-DMA at 111.54 could see pullback upto 112.15.
Support levels - 110.61 (23.6% Fib of 118.662 to 108.130 fall), 110.56 (weekly 200-SMA), 109.55 (200-DMA)
Resistance levels - 111.54 (50-DMA), 112, 112.15 (38.2% Fib and 20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-breaks-below-100-DMA-good-to-go-short-on-rallies-706461) has hit all targets.
Recommendation: We would wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -68.4452 (Bearish), while Hourly JPY Spot Index was at 91.7608 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
