FxWirePro: JPY bulls back in control after upbeat IP data, good to sell USD/JPY rallies

JPY bulls fought back control after Wednesday's less dovish FOMC renewed expectations for a US rate lift-off in December and lifted USD higher.

• USD spiked to almost three-month highs against its major peers on Wednesday, USD/JPY hit 121.26 overnight
   
• The pair has erased more than half of yesterday's FOMC-backed gains, is holding just above cloud base at 120.67, at the time of writing trading at 120.75
   
• Upbeat Japan's industrial output figures, which appears to ease the pressure on the BOJ to ease this week supporting JPY
   
• Japan industrial output rose a solid 1% m/m in September, opposed to market expectations of a 0.5% decline in output
   
• Technicals point South, Stochs are at overbought, on the verge of a bearish crossover, RSI is biased lower
   
• Immediate resistance for the pair is seen at 120.99 (200 DMA), while support on the downside is located at 120.30 (daily Tenkan)
   
• Due later today in the NY Session, US advance GDP estimate will remain the main highlight together with BOJ policy decision due tomorrow 
   

Recommendation: Good to sell USD/JPY rallies around 120.85, SL: 121.30, TP: 120.30