FxWirePro: USD/JPY knocked below 5-DMA as risk-off returns ahead of NFP, intraday bias lower

• USD/JPY bears in control, pair knocked below 5-DMA as JPY remains bid amid risk-off ahead of NFP.
   
• Moreover, comments from the BOJ Chief Kuroda also offered fresh impetus to the Japanese currency, collaborating to the sell-off in USD/JPY.
   
• Kuroda said that he is confident that ‘wage and prices would start to accelerate in coming months and years'.
   
• On the charts, we see that the major has retraced from channel top resistance after upside momentum failed shy of 100-DMA.
   
• The pair has broken below 5-DMA at 112.23 to hit session lows of 112.15. Next major support is seen at 1H 200-SMA at 111.65.
   
• Stochs are poised to rollover from overbought levels and RSI has turned south.
   
• Break below 1H 200-SMA with confirmation on Stochs will see drag lower.
   
• Focus remains on the crucial US NFP data due later in the NA session for further direction.

Support levels - 112, 111.68 (50-DMA), 111.07 (38.2% Fib of 98.78 to 118.662 rise), 110.37 (20-DMA)

Resistance levels – 113, 113.40 (50% Fib of 118.662 to 108.13 fall), 114, 114.64 (61.8% Fib)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-finds-strong-resistance-at-daily-cloud-good-to-go-long-on-break-above-677686) has hit TP1&2.

Recommendation: Watchout for break below 1H 200-SMA to go short.

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 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.