FxWirePro: USD/JPY reverses from highs at 115.19, holds above 5-DMA support

• USD/JPY has been rejected at session highs by 115.19, has edged lower to currently trade at 114.85.
   
• The pair is trading in an extremely narrow range as markets remain cautious ahead of FOMC meeting Wednesday.
   
• After upbeat U.S. NFP data markets fully priced in for a Fed hike on 15 March, but the main question now is over the pace of tightening thereafter. 
   
• U.S. debt ceiling that expires on March 16 is another major concern, which could favour Yen demand.
   
• If the Democrats are unable to reach a quick agreement to extend the ceiling, the Trump 'fiscal-policy-trade' could come into jeopardy.

Support levels - 114.54 (5-DMA, 1H 100-SMA & cloud base), 113.96 (50-DMA), 113.55 (Mar 6 low)

Resistance levels - 115, 115.50 (Mar 10 high), 115.96 (61.8% Fib retrace of 118.66 to 111.59 fall)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Neutral                Neutral       
1D          Bullish                Neutral        
1W         Bullish                Neutral      

Call update: We had advised a short on break below 114.50 (http://www.econotimes.com/FxWirePro-USD-JPY-trades-narrow-range-weakness-on-break-below-daily-cloud-585973).

Recommendation: We remain bearish on decisive break below 114.50.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 2.68539 (Neutral), while Hourly JPY Spot Index was at 6.21567 (Neutral) at 1300 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.