- USD/JPY has failed to hold break above 112 handle, slips below to currently trade at 111.90.
- The pair finds strong support at 111.77 (100-DMA), break below could see further drag.
- Technical studies are slightly bearish, RSI is biased lower and Stochs are on the verge of rollover from overbought levels.
- Break below 100-DMA will find next major support at 20-DMA at 0.9457. Violation there could see test of trendline at 109.55.
- On the flipside, resumption of upside only on decisive break above trendline resistance at 112.65.
Support levels - 111.77 (100-DMA), 111 (nearly converged 20&200 DMAs), 110.23 (May 18 low), 109.55 (trendline)
Resistance levels - 112.12 (5-DMA), 112.65 (trendline), 113
Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-hits-monthly-high-at-11207-bias-higher-as-long-as-pair-holds-100-DMA-support-775974) has almost hit all targets.
Recommendation: Watch out for break below 100-DMA to go short, SL: 112.65, TP: 111/ 110.25/ 110/ 109.55
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 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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