- USD/JPY rangebound on the day, with the day's high at 110.14 and low at 109.88.
- Recovery in the pair stalled overnight at 23.6% Fibos, the pair closed below 110 handle.
- Downside finds immediate support at 5-DMA at 109.83, we see weakness on break below.
- We find bearish divergence from price action on RSI and Stochs on the hourly charts.
- Caution seen in the markets ahead of key US NFP data due later in the NY session.
- Break above 110.61 (23.6% Fib retrace of 118.662 to 108.130 fall) finds next resistance at 100-DMA at 111.17.
- Cloud on weekly charts is offering strong support, we see weakness on close below.
Support levels - 109.83 (5-DMA), 109.71 (20-DMA), 109, 108.80 (June 14 lows)
Resistance levels - 110.61 (23.6% Fib), 110.95 (Aug 16 high), 111.17 (100-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 13.8683(Neutral), while Hourly JPY Spot Index was at -31.0107 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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