- USD/JPY mixed start to the week, hits fresh muti-week highs at 111.06.
- However, bulls struggle to extend gains. The major has slipped below 111 handle and is currently trading at 110.77 levels.
- Technical indicators on daily charts are biased higher. Stochs show bullish momentum and RSI strong above 60.
- Breakout at trendline resistance at 111.75 will likely see test of 111.40 (May 21 high) ahead of 112.57 (78.6% Fib).
- On the flipside, rejection at trendline resistance and break below 200-DMA at 110.17 will see further weakness.
- For the week ahead, focus will be on nonfarm payrolls. Much attention will also be paid to the 6th July when trade tariffs imposed by the Trump administration on China will kick in.
Support levels - 110.75 (trendline), 110.44 (5-DMA), 110.17 (nearly converged 21-EMA & 200-DMA)
Resistance levels - 110.87 (61.8% Fib), 111, 111.40 (May 21 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 0.780371 (Neutral), while Hourly JPY Spot Index was at -16.6629 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
