FxWirePro: USD/JPY recovery stalls shy of 20-DMA, good to sell rallies

• USD/JPY Trump-led recovery falters, the major rejected shy of 20-DMA. 
   
• Japan's data mixed, better than expected Japanese retail sales report overshadowed disappointing industrial output data, which fell for the first time in six months last month.
   
• BOJ’s Kuroda on the wires said BOJ will continue to pursue powerful monetary easing policy.
   
• Technicals are biased lower, we see scope for test of 100-DMA at 111.75, bearish reversal only on break above 20-DMA at 112.96.
   
• On hourly charts we see bearish MACD line crossover on signal line. Upside capped by 1H 100-SMA at 112.72.
   
• Focus remains on US prelim GDP figures and Trump’s interview ahead of his congressional address due later on Tuesday.

Support levels - 112 (trendline), 111.75 (100-DMA), 111.59 (Feb 7 low)

Resistance levels - 112.64 (5-DMA), 112.72 (1H 100-SMA), 112.95 (20-DMA)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral    
 
Recommendation: Good to go short on rallies around 112.50, SL: 113, TP: 112/ 111.75/ 111.60

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -24.3736(Neutral), while Hourly JPY Spot Index was at 59.2909 (Slightly bullish) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.