- USD/JPY is trading a narrow range as we head into the European open.
- The major has retraced brief dip below 200-DMA which is strong support at 111.71.
- Technical indicators are still biased lower, scope for further downside intact.
- We see weakness only on break below 200-DMA support, test of 110.95 (June 22 low) then likely.
- On the flipside, breakout above 20-DMA could see bearish invalidation.
Support levels - 111.71 (200-DMA), 111, 110.95 (June 22 low)
Resistance levels - 112.53 (5-DMA), 112.72 (20-DMA), 113
Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-capped-at-20-DMA-on-track-to-test-200-DMA-at-11170-stay-short-807245) has hit intended targets.
Recommendation: We prefer to remain sidelined for now. Watchout for break below 200-DMA.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -92.0022 (Bearish), while Hourly JPY Spot Index was at 12.8687 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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