- USD/JPY has breached strong support by 20-DMA at 116.99.
- Technical studies have turned bearish. RSI and Stochs have rolled over from overbought zone.
- MACD has shown a bearish crossover on signal line and momentum is lower.
- Close below 20-DMA will see scope for test of 113.97 (23.6% Fib if 98.78 to 118.66 rally).
- On the flipside break above 117.19 (5-DMA) could see test of 118.45 ( trendline ).
- Support levels - 116.28 (session low), 116.15 (20-DMA), 116
- Resistance levels - 117, 117.19 (5-DMA), 117.42 (session high), 118
Recommendation: Good to go short on rallies around 117, SL: 117.50, TP: 116.30/ 116.15/116
FxWirePro Currency Strenght Index: FxWirePro's Hourly USD Spot Index was at -134.947 (Highly bearish), while Hourly JPY Spot Index was at 70.8868 (Highly bullish) at 0426 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
