FxWirePro: USD/JPY holds above channel base, scope for upside on bullish Stochs divergence

• USD/JPY is extending consolidation along strong support by channel base at 108.72.
   
• Only a decisive break below will see further weakness in the pair.
   
• Successive Doji formation on weekly charts along with bullish Stochastics divergence on dailies raises scope for upside.
   
• Increased cautiousness ahead of the Jackson Hole Symposium likely to offer some support to the Yen bulls.
   
• 20-DMA at 109.92 is stiff resistance on the upside, break above will see reversal.
   
• On the downside, break below channel base could see drag upto 108.13 (Apr 17 low).

Support levels - 109.21 (5-DMA), 109, 108.72 (Triple bottom), 108.13 (Apr 17 low)

Resistance levels - 109.92, 110, 110.95 (Aug 16 high), 111.17 (100-DMA)

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -20.8015 (Neutral), while Hourly JPY Spot Index was at -39.6177 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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