FxWirePro: USD/JPY finds major resistance at 112.65, good to go long on break above

• USD/JPY is testing major trendline resistance at 112.65, break above to see test of 113.17 (78.6% Fib of 114.368 to 108.802 fall).
   
• The pair closed well above 100-DMA and daily cloud on Tuesday's trade, bias still higher.
   
• Price action has broken range trade between major 100 and 200 day MAs. Technical indicators are biased higher, RSI above 50 and biased higher.
   
• Bullish divergence seen on Stochs and RSI, raises scope for further upside.

Support levels - 112.07 (5-DMA), 111.79 (100-DMA), 111, 110.89 (20-DMA)

Resistance levels - 112.65 (trendline), 113, 113.17 (78.6% Fib of 114.368 to 108.802 fall)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-hits-monthly-high-at-11207-bias-higher-as-long-as-pair-holds-100-DMA-support-775974) has hit TP1&2.

Recommendation: Bias higher. Stay long.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -67.7819 (Neutral), while Hourly JPY Spot Index was at -122.15 (Bearish) at 0910 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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