FxWirePro: USD/JPY consolidates break above 200-DMA, bias higher

• USD/JPY is consolidating the break above 200-DMA made last week.
   
• The Bank of Japan last week held interest rate unchanged in a 7-2 vote and reaffirmed its yield curve control policy.
   
• USD/JPY initially fell, but pared losses to close largely unchanged on Friday.
   
• Technical indicators for the pair support upside, we see scope for test of cloud base at 111.81. Upside intact as long as pair holds above 200-DMA.
   
• The pair is currently hovering around 50-DMA at 111 levels, break above likely targets 100-DMA at 111.85.
   
• On the flipside, break below 200-DMA could see drag upto 109.11 (June 7 low).
   
• Focus on Fed talk this week starting tonight from Evans and Dudley along with the BoJ minutes due on Wednesday.

Support levels - 111, 110.67 (20-DMA), 110.56 (200-DMA), 110.50 (5-DMA)

Resistance levels - 111.71 (June 2 high), 111.85 (100-DMA), 112, 112.15 (38.2% Fib 118.662 to 108.130 fall)

Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-faces-stiff-resistance-at-11020-decisive-break-above-could-see-further-upside-758060).

Recommendation: Bias higher, stay long for 111.70/ 111.80/ 112

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 40.0542 (Neutral), while Hourly JPY Spot Index was at -112.404 (Bearish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.