- USD/JPY downside held above 112 handle overnight, is currently trading at 112.27 levels.
- The pair has formed a Doji pattern on daily charts, recovery lacks traction, upside capped below 5-DMA.
- The pair has hit fresh 2-week lows at 112.05, broken below 200W SMA at 112.38, bias remains bearish.
- Immediate support seen at 100-DMA at 112.02, break below will accentuate weakness.
- Violation at 100-DMA raises scope 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 - 112.02 (100-DMA), 111.90 (38.2% Fib retrace of 107.318 to 114.737), 111.65 (200-DMA)
Resistance levels - 112.53 (5-DMA), 112.90 (20-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) has hit TP1/2.
Recommendation: Watchout for break below 100-DMA for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -129.24 (Bearish), while Hourly JPY Spot Index was at -12.1287 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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