FxWirePro: USD/JPY upside struggles at 5-DMA, bias lower, good to short rallies

• Bank of Japan’s (BOJ) 1 trillion Yen bond buying effort failed to meet market expectations. 
   
• Yen strength saw USD/JPY hit session lows at 112.51 as the 10-year Japanese bond yield strengthened four basis points to 0.155%.
   
• The pair retakes 113.00 handle as the offered tone around Yen gathered pace in the European session.
   
• But upside lacks traction, the pair is struggling at 5-DMA at 113.13, bias lower.
   
• Only break above 20-DMA at 114.10 will reverse the bearish bias.

Support levels - 112.51 (session low), 112 (trendline), 111.35 (Nov 28 low)

Resistance levels - 113.13 (5-DMA), 114.10 (20-DMA), 114.40 (channel top) 

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                Neutral       
4H          Bullish                Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Recommendation: Good to go short on rallies around 113.15/25, SL: 114.15, TP: 112.50/ 112/ 111.35/ 111  

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.