FxWirePro: USD/JPY hovers around 38.2% Fib, intraday bias bearish

• USD/JPY extends downside on the day, is trading at 111.03, down -0.21% on the day, having posted a daily high at 111.33.
• The pair remains capped below 200-DMA which is stiff resistance at 112 levels.
• Spinning top formation seen on daily candles on Thursday's trade, suggests indecision.
• The pair failed to see follow through of a 'Morning Star' candlestick pattern.
• Price is hovering around 38.2% Fib retrace of 98.787 to 118.662 rally at 111.07.
• Intraday bias is bearish. The pair finds strong support at 110.62, break below could see further weakness.
• Test of channel base at 109.30 then likely, bearish invalidation on close above 200-DMA.

Support levels - 110.62 (cloud base), 110, 109.30 (channel base)

Resistance levels - 111.26 (5-DMA), 111.25 (cloud top), 111.96 (200-DMA).

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-Possible-Death-Cross-on-USD-JPY-go-short-on-decisive-close-below-200-DMA-815003).

Recommendation: Hold for targets. Watch out for break below 110.62, target 109.30.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -37.6512 (Neutral), while Hourly JPY Spot Index was at 102.088 (Bullish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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