- USD/JPY has broken 50-DMA at 111.67, bias remains higher.
- The pair finds stiff resistance at 112.31 (Ichi cloud base), break above will see further upside.
- Momentum studies are bullish, RSI is strong at 62 levels and biased higher.
- Weakness with chance of bearish reversal only below 50-DMA at 111.67.
- FOMC meeting and ADP employment report in focus for further impetus.
Support levels: 112, 111.75 (5-DMA), 111.67 (50-DMA), 110.61 (23.6% Fib retrace of 118.662 to 108.13 fall), 110.20 (20-DMA)
Resistance levels: 112.31 (cloud base), 112.86 (cloud top), 113, 113.40 (50% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Bullish Neutral
1W Neutral Neutral
Recommendation: Good to go long on break above daily cloud, SL: 111.67, TP: 112.85/ 113/ 113.40
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 73.2022 (Bullish), while Hourly JPY Spot Index was at -155.777 (Bearish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
