FxWirePro: USD/JPY struggles to hold above 113 handle, more downside likely

USD/JPY extended downside to hit fifteen-month lows of 112.53, but found fresh demand at lows which saw the pair pullback above 113 levels.

• Markets seem to have ignored Yellen's optimistic remarks as uncertainty over Fed rate hike prospects this year continue to linger.
   
• The major is however struggling to hold above the 113 handle, and has slipped back again to currently trade at 112.96.
   
• 112.57 (Nov 3rd 2014 low) is acting as immediate support on the downside, while upside see resistance at 114.78 (5-DMA).
   
• Stochs and RSI are at highly oversold levels, but do not show signs of rollover. Also MACD indicates further downside momentum.
   
• Focus now remains on the second round of Fed Chair Yellen's testimony and US jobless claims data due later today.
   
• Our earlier call (http://www.econotimes.com/FxWirePro-USD-JPY-fails-to-hold-above-115-handle-runs-into-fresh-offers-at-highs-158317) has hit targets.
   

Recommendation: Book partial profits, lower trailing stops to 113.75, TP: 112