- USD/JPY has broken below major support by 100-DMA at 113.13, scope for downside builds.
- The pair is tracking DXY lower, amid holiday-thinned markets (Japan closed for Vernal Equinox Day) and lack of fresh fundamental drivers.
- FOMC meeting last week which stressed gradualism in its tightening cycle.
- The U.S. data calendar this week’s is thin with focus on new and existing home sales, and durable goods orders.
- Technical studies are bearish, RSI and stochs are biased lower and MACD has shown a bearish crossover on signal line.
- 112 levels in sight, violation there could see test of 111.60 and then 111 levels.
- Fedspeak from Evans, George, Mester, Kashkari, Kaplan, Bullard and Yellen will be closely watched.
Support levels - 112, 111.68 (Feb 28 low), 111.35 (Nov 28, 2016 low), 111.07 (38.2% Fib retrace of 98.78 to 118.66 rise)
Resistance levels - 113.13 (100-DMA), 113.32 (5-DMA), 113.67 (cloud base)
TIME TREND INDEX OB/OS INDEX
1H Bearish Oversold
4H Bearish Oversold
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short on rallies around 112.60/70, SL: 113.20, TP: 111.70/ 111.35/ 111
