FxWirePro: USD/JPY closes bearish gap open, 5-DMA at 111.62 offers stiff resistance

• USD/JPY closes bearish gap open and is trading 0.23 percent higher in the Asian session.
   
• Markets brush aside news of North Korea having fired a mid-range missile near Pyongyang on Sunday.
   
• Rally in the UST yields on increased expectations that the upcoming FOMC minutes could refuel June Fed rate hike bets keep USD bid.
   
• The major finds strong support at weekly 200-SMA at 110.56. We see further weakness only on break below.
   
• On the upside, close above 50-DMA at 111.41 could see pullback upto 112.15.
   
• Focus now turns on the Budget plan due to be released by the Trump administration tomorrow.

Support levels - 110.61 (23.6% Fib of 118.662 to 108.130 fall), 110.62 (weekly 200-SMA), 109.65 (200-DMA)

Resistance levels - 111.41 (50-DMA), 112, 112.15 (38.2% Fib and 20-DMA)

Recommendation: We would wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -123.146 (Bearish), while Hourly JPY Spot Index was at 19.8768 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.