FxWirePro: USD/JPY subdued after bearish gap open, bias lower, stay short

• USD/JPY opens with a bearish gap and trades subdued in the Asian session amid wide-spread risk-off.
   
• The pair is trading in a narrow range, remains capped below 5-DMA, bears still in control.
   
• Major support at 112 levels, break below will accentuate weakness.
   
• Technical indicators are biased lower, RSI is below 50, Stochs are biased lower and ADX supports trend.
   

Support levels - 112 (psychological level), 111.35 (Nov 28 low), 111.07 (38.2% Fib retrace of 98.78 to 118.66 rally)

Resistance levels - 112.75 (5-DMA), 113, 113.90 (20-DMA), 113.97 (23.6% Fib)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-upside-struggles-at-5-DMA-bias-lower-good-to-short-rallies-522045) has hit TP1.

Recommendation: Bias lower, stay short. Bearish invalidation only above 20-DMA at 113.90.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -68.1476(Bearish), while Hourly JPY Spot Index was at 42.837 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.