- USD/JPY is consolidating ADP-led gains near 114.50, trades a narrow range in the day.
- Unexpected rise in the US ADP jobs data released on Wednesday keep the US dollar supported.
- Renewed risk-off following the release of poor Chinese CPI figures keeps yen supported and upside in the pair capped.
- We see slight bullish divergence on RSI which supports upside in the pair.
- The pair finds major trendline resistance at 114.60, further upside only on break above.
- On the flipside immediate strong support lies at 114 (50-DMA), bullish invalidation on break below.
- Focus now on NFP Friday for further direction.
Support levels - 114.15 (5-DMA), 114 (50-DMA), 113.52 (20-DMA)
Resistance levels - 114.95 (Feb 15 high), 115.12 (50% Fib of 118.662 to 111.594 fall), 115.37 (Jan 27 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Neutral Neutral
1D Neutral Neutral
1W Bearish Neutral
Recommendation: Go long on breakout above trendline resistance at 114.60, SL: 114, TP: 115.10/ 115.40/ 115.62
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 120.617(Highly bullish), while Hourly JPY Spot Index was at -41.0408 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
