FxWirePro: USD/JPY struggles to hold above 110 handle, bearish divergence keeps scope for downside
US dollar index has declined sharply after hitting highs of 93.42. USD/JPY struggles to hold gains above 110 handle. The major edged higher from lows of 109.54 in Tokyo low to reach 110.01, before relapsing to 109.62 lev…
US dollar index has declined sharply after hitting highs of 93.42. USD/JPY struggles to hold gains above 110 handle.
The major edged higher from lows of 109.54 in Tokyo low to reach 110.01, before relapsing to 109.62 levels.
Price action hovers around 50% Fibos and technical studies support further upside in the pair. Scope for test of 61.8% Fib at 110.87 on bullish momentum.
That said, bearish divergence and 'Cypher Pattern' on daily charts keeps scope for downside.
20-DMA is strong support at 108.68 levels. Break below to see further weakness.
Support levels - 109.33 (5-DMA), 109, 108.68 (20-DMA)
Resistance levels - 110, 110.87 (61.8% Fib), 111
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 44.4168 (Neutral), while Hourly JPY Spot Index was at -71.5166 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
