- USD/JPY recovered from session lows at 105.78 on upbeat economic data from the US.
- Jobless Claims and Import Prices were positive and the Empire Manufacturing data was also better than expected.
- The pair closed above 106 handle, but turmoil in Washington on news that Trump has fired H.R. McMaster as his national security adviser weighing on the pair.
- The major has once again slipped below 106 handle and is currently trading at 105.94.
- Technical studies are slightly bearish. Upside capped at 5-DMA which has turned south.
- RSI below 50 levels and biased lower. Stochs are biased lower, momentum bearish.
- We see scope for test of 105 levels. Bearish invalidation only above 21-EMA at 106.76.
Support levels - 105.25 (Mar 2 low), 105 (major trendline), 104, 103.04 (78.6% Fib)
Resistance levels - 106.31 (5-DMA), 106.76 (21-EMA), 107
Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-Trade-Idea-1203746) is progressing well.
Recommendation: Hold for targets.
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FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 68.1476 (Bearish), while Hourly JPY Spot Index was at 42.837 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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