- USD/JPY has bounced off major trendline support on Friday's trade, intraday bias remains higher.
- CFTC positioning data for the week ending 4th April 2017 showed surge in USD net longs.
- Technical indicators support upside, daily stochs and RSI are biased higher and MACD is on verge of a bullish crossover.
- However, upside has been capped by weekly 5-SMA at 111.57, further upside only on break above.
- This week’s event calendar has retail sales, PPI, CPI, preliminary U-Mich sentiment, JOLTS survey and NFIB small business sentiment.
- Intraday bias is higher. If the pair manages to break weekly 5-DMA at 111.57 we see gains upto 112.70 (50-DMA).
- On the flipside, break below trebdline support at 110.10 could see drag upto 109.37 (50% Fib retrace of 100.08 to 118.66 rally)
Support levels - 110.92 (5-DMA), 110.10 (trendline), 109.37 (50% Fib retrace of 100.08 to 118.66 rally)
Resistance levels - 111.57 (Weekly 5-SMA), 111.67 (20-DMA), 112.69 (50-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 62.5259 (Bearish), while Hourly JPY Spot Index was at -134.343 (Neutral) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
