- USD/JPY price action breaks into daily cloud, but upside seems to struggling to break past cloud top.
- We find strong resistance at 112.80/90 levels, only break above could see further gains.
- Momentum studies are still bullish, RSI is strong at 66 levels with scope to run further.
- 50-DMA at 11.68 is strong support on the downside and we see weakness and chance of bearish reversal only below.
Support levels - 112.19 (5-DMA), 111.68 (50-DMA), 110.61 (23.6% Fib retrace of 118.662 to 108.13 fall)
Resistance levels – 113, 113.40 (50% Fib of 118.662 to 108.13 fall), 114, 114.64 (61.8% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-finds-strong-resistance-at-daily-cloud-good-to-go-long-on-break-above-677686) has hit TP1.
Recommendation: Book partial profits at highs. Raise trailing stops to 112.30. Hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 1.95383 (Neutral), while Hourly JPY Spot Index was at -151.976 (Bearish) at 0945 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
