FxWirePro: USD/JPY spikes past 112 handle as yen loses safe haven appeal, eyes 78.6% Fib at 112.57

• USD/JPY has spiked past 112 handle on Wednesday's trade as markets brush off trade wars angst.
   
• Yen is losing its safe-haven appeal as markets seem to trust Trump's move on imposing tariffs on Chinese goods.
   
• The major is currently extending previous session's gains, trades 0.24% higher on the day at 112.28 at the time of writing.
   
• Technical indicators are bullish on daily charts. We see scope for further upside.
   
• We see a possibility of a 'Golden Cross' formation (bullish 50-DMA crossover on 200-DMA) which if successful will see further upside.
   
• Price action has broken major trendline resistance at 111.85 and next bull target lies at 78.6% Fib at 112.57.
   
• On the flipside, 200-DMA is major support at 110.11. We see bullish invalidation on retrace below.

Support levels - 111.90 (trendline resistance turned support), 111.31 (5-DMA), 110.87 (61.8% Fib)

Resistance levels - 112.57 (78.6% Fib), 113, 113.38 (Jan 8 highs)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Risk-assets-bid-on-EU-migration-deal-long-USD-JPY-breakout-at-11075-1396553) has hit all targets.

Recommendation: Good to go long around 112.10/20, SL: 111.80, TP: 112.55/ 113

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 77.295 (Neutral), while Hourly JPY Spot Index was at -118.111 (Bearish) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.