FxWirePro: USD/JPY upside capped at 5-DMA, 100-DMA at 112 in sight, stay short

• USD/JPY recovery attempts capped at 5-DMA at 112.76, intraday bias lower.
   
• The pair has hit fresh 2-week lows at 112.37, bears now target 100-DMA at 112.00.
   
• Price action is holding support by 200W SMA at 112.38, breach there will accentuate weakness.
   
• Technicals studies for the pair hint further downside. Stochs and RSI are biased lower.


• The pair has slipped below 23.6% Fib retracement of 107.318 to 114.737 rally at 112.98.
   
• Violation at 100-DMA could see further weakness. Scope then for test of 200-DMA at 111.65.
   
• Focus now on FOMC meeting minutes and the keenly watched NFP data due this week for further impetus.

Support levels - 112 (100-DMA), 111.90 (38.2% Fib retrace of 107.318 to 114.737), 111.65 (200-DMA)

Resistance levels - 112.76 (5-DMA), 112.93 (nearly converged 20 and 50-DMA), 113.63 (Dec 21 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-breaches-50-DMA-support-at-11297-bias-lower-1076203) is progressing well.

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -137.654 (Bearish), while Hourly JPY Spot Index was at 26.3459 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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