FxWirePro: USD/JPY capped below 20-DMA, further upside only on break above

• USD/JPY struggles at 20-DMA resistance at 110.26, intraday bias neutral.
   
• US dollar came under renewed selling pressure amid a retreat in Treasury yields.
   
• The pair hit 9-day high of 110.48 on Friday after upbeat NFP which rose 200k in Jan, beating expectations of 180k.
   
• However, the pair pared gains to close lower after safe demand for yen shot up as US stocks fell spooked by Yellen's comments.
   
• Technically, the pair was capped at stiff resistance at 20-DMA and we see further upside only on break above.
   
• Rejection at 20-DMA could see test of channel base at 109.65 and then 78.6% Fib at 108.90.
   
• On the flipside, breakout above 20-DMA will raise scope for test of 200-DMA at 111.70.

Support levels - 109.65 (Channel base), 109.50 (5-DMA), 108.90 (78.6% Fib retrace of 107.318 to 114.737 rally)

Resistance levels - 110.26 (20-DMA), 110.48 (Feb 2 high), 111

Recommendation: Prefer to wait for clear directional bias.

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