- USD/JPY trades in a narrow range, bias is higher. The pair made a high of 114.07 and a low of 113.85.
- Rising expectations of Fed tightening at March meeting likely to keep upside bias intact.
- The pair is currently holding a break above major trendline resistance and we see weakness only on break below.
- Upside is struggling to break above 50-DMA for a fourth consecutive session. However, bullish RSI divergence raises scope for upside.
- Break above 50-DMA currently at 114.15 could see further gains.
Support levels - 113.50 (Trendline resistance turned support), 113.27 (1H 200-SMA), 113
Resistance levels - 114.15 (50-DMA), 114.95 (Feb 15 high), 115.62 (Jan 19 high)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bullish Neutral
1D Bullish Neutral
1W Neutral Neutral
Recommendation: Good to go long on break above 50-DMA at 114.15, SL: 113.50, TP: 114.95/ 115.60/ 116
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -17.0513(Neutral), while Hourly JPY Spot Index was at 62.5476 (Slightly bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
