FxWirePro: USD/JPY holds 100-DMA support, good to go long on breakout above 112.75

• USD/JPY has filled bearish gap open and is currently trading 0.20% higher on the day at 112.60.
   
• The pair extending bounce from lows struck just ahead of 112 handle amid better risk tone.
   
• Technical studies are slightly bullish on daily charts, RSI is biased higher, but Stochs are at overbought levels, so caution advised.
   
• The pair finds strong support at 111.77 (100-DMA), break below could see further drag, test of 111.07 (20-DMA) then likely.
   
• Stiff resistance seen at 112.75 (major trendline), break above will see upside continuation.
   
• Investors eagerly await fresh hawkish hints from the FOMC minutes due on the cards in the week ahead.
   

Support levels - 111.77 (100-DMA), 111 (nearly converged 20&200 DMAs), 110.23 (May 18 low), 109.55 (trendline)

Resistance levels - 112.75 (trendline), 113, 113.79 (May 16 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-slips-below-112-handle-finds-strong-support-at-100-DMA-good-to-short-break-below-783652) was not triggered as the pair failed to break below 100-DMA.

Recommendation: Good to go long on decisive breakout above 112.75, SL: 112.15, TP: 113/ 113.80

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