- US dollar lifted by upbeat US data, FOMC minutes. Focus now on US NFP data.
- USD/JPY extends gains for 3rd consecutive session, breaks stiff resistance at 20-DMA (112.93).
- The major has re-claimed 113 handle, bias higher. Technical studies on intraday charts are turning bullish.
- Next major resistance is seen at 113.35 (trendline), breakout there paves way for further gains.
- Failure at 20-DMA and close below will negate bullish bias. Focus on NFP data for further impetus.
Support levels - 112.93 (20-DMA), 112.63 (5-DMA), 112.25 (trendline), 111.90 (38.2% Fib retrace of 107.318 to 114.737), 111.65 (200-DMA)
Resistance levels - 113.35 (trendline), 113.63 (Dec 21 high), 114, 114.32 (61.8% Fib retrace of 118.662 to 107.318 fall)
Recommendation: Good to go long on close above 20-DMA, SL: 112.65, TP: 113.35/ 113.63/ 114/ 114.30
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -30.6766 (Neutral), while Hourly JPY Spot Index was at -81.8561 (Bearish) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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