FxWirePro: USD/JPY holds break below 50-DMA, bears eye 200-DMA at 111.73, stay short

• USD/JPY holds break below 50-DMA, intraday bias bearish.
   
• Recovery attempts capped at 5-DMA at 112.47, bears eye 200-DMA at 111.74.
   
• Break below could accentuate weakness. Scope then for test of 111.47 weekly 20-SMA ahead of 111 levels.
   
• On the flipside, we see major resistance at 112.80 (50-DMA). Bearish invalidation only on break above.
   
• Momentum indicator is flat in oversold territory, while the RSI gains traction downwards around 41, supporting weakness.
   
• In the absence of key data drivers in a holiday thinned week, focus remains on the yield curve for direction.

Support levels - 111.90 (38.2% Fib retrace of 107.318 to 114.73 rally), 111.73 (200-DMA), 111 (50% Fib)

Resistance levels - 113.48 (5-DMA), 112.79 (50-DMA), 112.98 (23.6% Fib retrace of 107.318 to 114.73 rally)

Recommendation: Stay short on rallies, SL: 112.70, TP: 112/ 111.90/ 111.65

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -42.5107 (Neutral), while Hourly JPY Spot Index was at 74.04 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest