- US dollar index is posting moderate gains on Thursday amidst usual adjustment to month-end flows and some pick-up in demand for the riskier assets.
- USD/JPY has reclaimed the 111 handle and intraday bias remains neutral.
- Next in focus would be the US economic docket, featuring the release of ADP report, weekly jobless claims and ISM manufacturing PMI.
- Investors keenly await US monthly jobs report, due on Friday for further direction.
- The major finds strong support at 110.08 (200-DMA) and we see weakness only on break below.
- On the upside, close above 5-DMA could see test of 111.81 (cloud top) and then 112.17 (20-DMA).
Support levels - 110.61 (23.6% Fib), 110.30 (trendline), 110.23 (May 18 low)
Resistance levels - 111.81 (cloud top), 112, 112.17 (20-DMA)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 11.5384 (Neutral), while Hourly JPY Spot Index was at -119.373 (Bearish) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
