- USD/JPY pares gains as upside remained capped below 5-DMA at 113.61.
- The major tracked US-Japan 10-year yield spread lower and brushed aside hawkish Yellen's comments.
- Technical indicators on daily charts have turned bearish, RSI and Stochs have rolled over from overbought levels and MACD is on verge of bearish crossover.
- Immediate support is seen at 20-DMA at 112.50. Violation there could see downside upto 112.15 (38.2% Fib).
- Focus remains on US monthly PPI and weekly jobless claims release along with day 2 of Yellen testimony.
Support levels - 113, 112.50 (20-DMA), 112.15 (38.2% Fib retrace of 118.662 to 108.130 fall)
Resistance levels - 113.61 (5-DMA), 114, 114.63 (61.8% Fib)
Recommendation: Good to go short on rallies around 113.15/25, SL: 113.65, TP: 113/ 112.50/ 112.15
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -92.3273 (Bearish), while Hourly JPY Spot Index was at 119.096 (Bullish) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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