- USD/JPY remains capped below 107 handle, intraday bias higher as long as pair holds above 20-DMA at 104.43.
- The pair has recovered from session lows at 106.25 driven easing risk-off trades and stalled USD selling across the board.
- The major is struggling to hold gains above 200-DMA currently at 106.53. Breakout above could see test of 108 handle.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-on-track-to-test-200-DMA-at-10658-good-to-long-dips-394125) has achieved all targets.
- Major support levels - 106, 105.70 (5-DMA), 105, 104.43 (20-DMA)
- Major resistance levels - 106.53 (200-DMA), 107, 107.49 (July 21 high)
- Markets ignored second-tier Japanese economic data, focus remains on the USD dynamics.
- At 0500 GMT FxWirePro's Currency Strength Index stood as follows: USD: + 29.5632 (Neutral), JPY: -109.94 (Bearish)
Recommendation: Good to go long on breakout above 200-DMA at 106.53, SL: 105.70, TP: 107/ 107.50
