FxWirePro: USD/JPY breaks weekly 100-MA, on track to test 120 levels

• Yen enters sixth weekly decline as USD/JPY surges to hit a fresh 10-month high at 115.61.
   
• Yen ignores better-than-expected October machinery orders which increased to 4.1 % m/m (forecast 1.0 %) vs previous -3.3 %.
   
• Markets are backing the greenback amidst strong risk-on, bias in the pair is higher.
   
• We see scope for test of 120.06 (78.6% Fib of 125.86 to 78.79 fall).
   
• Technical indicators are bullish, the major has broken above weekly 100-MA at 114.70 in the previous week.
   
• Momentum studies are bullish, RSI above 70 levels and biased higher.
   
• Fed funds futures continued to imply a 100% chance of a rate hike on 14 December, and two more rate hikes priced in for 2017.
   
• Support levels - 115.04 (1H 20-MA), 114.67 (weekly 100-MA), 114.45 (5-DMA), 114
   
• Resistance levels - 115.51 (61.8% Fib), 115.61 (session high), 116, 117.52 (Feb 8 week high)
   

Recommendation: Good to go long on dips around 114.75/115, SL: 113.50, TP: 115.50/ 116/ 117.50
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FxWirePro's Hourly USD Spot Index was at 55.1326 (Neutral), while Hourly JPY Spot Index was at -58.4593 (Neutral) at 0150 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex