FxWirePro: USD/JPY retraces below 113 handle, intraday bias neutral

USD/JPY chart on Trading View used for analysis

• USD/JPY has retarced below 113 handle and is currently trading at 112.98 after hitting session highs at 113.21.
   
• Data overnight showed US durable goods fell 4.4% in October, the largest drop in 15 months and considerably weaker than the -2.5% forecast.
   
• Investment  had been one of the stronger supports of US economic growth in the first three quarters and sharp drop in Oct is a potent warning regarding the economy's health.
   
• This report may raise speculation that the Fed may pause in its three year campaign to normalize US interest rates.
   
• On the other side Japan National CPI clocks in at 1.4% as expected and the Yen was largely muted after data.
   
• The pair is holding above daily cloud and 5-DMA support, remains in technically bullish territory.
   
• Price action has been struggling to break past 110-EMA barrier on the 2 hour charts.
   
• Break above 2H 110-EMA could see upside resumption. On the flipside, break below cloud could see further weakness.    

Support levels - 112.997 (cloud top), 112.83 (5-DMA), 112.67 (55-EMA)

Resistance levels - 113.10 (2H 110-EMA), 113.30 (1H 200 SMA), 114

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.