- USD/JPY consolidates at fresh 2-month highs at 111.66 hit overnight, bias higher.
- Cloud offers stiff resistance at 111.60, break above needed for further upside.
- Bulls await US dataflow for fresh impetus - export/import data and housing starts.
- Traders also prepare for the FOMC and BOJ policy decision due later this week.
- The Bank of Japan is expected to leave monetary policy unchanged, focus will be on Governor Haruhiko Kuroda's press conference.
- Market is gearing up for a possibly more hawkish FOMC meeting minutes, despite the risks to the US economy.
- Technically, the major has broken above 100-DMA at 111.13 and is on track to test 200-DMA at 112.21.
- Momentum studies are bullish and bullish divergence keeps scope for upside.
Support levels - 111.13 (100-DMA), 110.92 (5-DMA), 110.38 (50-DMA)
Resistance levels - 111.60 (cloud top), 111.75 (61.8% Fib retrace of 114.49 to 107.31 fall), 112.21 (200-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-edges-lower-from-4-week-highs-at-11073-focus-on-US-CPI-data-for-further-impetus-899162) has hit all targets.
Recommendation: Good to go long on break above cloud top, SL: 111.10, TP: 112/ 112.20/ 112.40
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -17.4822 (Neutral), while Hourly JPY Spot Index was at -45.7405 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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