- Bank of Japan’s (BOJ) 1 trillion Yen bond buying effort failed to meet market expectations.
- Yen strength saw USD/JPY hit session lows at 112.51 as the 10-year Japanese bond yield strengthened four basis points to 0.155%.
- The pair retakes 113.00 handle as the offered tone around Yen gathered pace in the European session.
- But upside lacks traction, the pair is struggling at 5-DMA at 113.13, bias lower.
- Only break above 20-DMA at 114.10 will reverse the bearish bias.
Support levels - 112.51 (session low), 112 (trendline), 111.35 (Nov 28 low)
Resistance levels - 113.13 (5-DMA), 114.10 (20-DMA), 114.40 (channel top)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short on rallies around 113.15/25, SL: 114.15, TP: 112.50/ 112/ 111.35/ 111
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -32.9275(Neutral), while Hourly JPY Spot Index was at 27.0931 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
