FxWirePro: USD/JPY holds 5-DMA support, bias higher, stay long

• USD/JPY is consolidating overnight gains after hawkish comments by Yellen at the Senate Banking Committee.
   
• The pair saw a 100 pip rally overnight which took the pair past 114 handle.
   
• Technically, the pair has broken major trendline resistance at 113.75.
   
• 5-DMA is holding as strong support on the downside. We see weakness only on close below.
   
• RSI is above 50 and biased higher, Stochs point north, and there is a bullish MACD crossover on signal line.
   
• On the upside, we see scope for test of 50-DMA at 115.04. Break above will see further bullishness.
   

Support levels - 114 (psychological level), 113.76 (5-DMA), 113.43 (20-DMA)

Resistance levels - 115.04 (50-DMA), 115.15 (50% Fib retrace of 118.662 to 111.594 fall), 115.62 Jan 19th high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral                 Neutral       
4H          Bullish                  Neutral       
1D          Bullish                  Neutral        
1W         Neutral                 Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-scope-for-test-of-50-DMA-at-11503-good-to-go-long-on-dips-533852) has hit TP1 and is progressing well.

Recommendation: Hold for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -32.9275(Neutral), while Hourly JPY Spot Index was at 27.0931 (Neutral) at 0230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.