FxWirePro: USD/JPY finds major trendline support at 112, intraday bias neutral

USD/JPY chart on Trading View used for analysis

• USD/JPY has bounced off major trendline support on Tuesday's trade.
   
• The pair retraced from lows of 111.95 to close above 112 mark.
   
• Price action is contained in a narrow range today, with day's high at 112.61 and low at 112.32.
   
• We see neutral bias for the day with scope for downside. Any bullishness only above 113 mark.
   
• On the flip side, we see strong support at 112, break below will see resumption of weakness.
   
• The combination of market risk in equities, political risk in Europe (Brexit and Italy)  and economic risk around the globe will keep safe havens in demand.
   
• Focus now on the forthcoming Bank of Japan (BoJ) policy meeting scheduled for October 31.
   
• Also, U.S. Q3 GDP data due later this week will be watched for clues on further direction.

Support levels - 112 (major trendline support), 111.45 (lower BB) 

Resistance levels - 112.93 (20-DMA), 113.17 (July 19 high)

Recommendation: Watch out for break below 112 handle to go short.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.