- USD/JPY edges lower from session highs at 106.94, pauses just shy of 107 handle.
- The pair tests 20-DMA resistance at 106.75, close above could see further upside.
- The Bank of Japan (BOJ) kept the interest unchanged as expected, held its upbeat view on the economy.
- Also, the central bank kept yield curve control target at zero percent.
- Focus now on Kuroda's presser, the Japanese Yen may pick up bid if Kuroda talks about QQE taper.
- We have seen the pair bounce off major trendline support on Monday's trade, weakness only on break below.
- Technical studies are turning bullish. RSI and Stochs are biased higher.
- Next bear target on violation at 5-DMA lies at 105.20 (major trendline support) ahead of 78.6% Fib at 103.04.
- Breakout at 20-DMA could see test of 108.17 (upper BB) ahead of 108.72 (50% Fib)
Support levels - 106.38 (61.8% Fib), 106.23 (5-DMA), 105.20 (trendline), 105
Resistance levels - 106.75 (20-DMA), 107, 107.90 (Feb 21 high), 108.17 (upper BB)
Recommendation: Good to go long on dips around 106.40/50, SL: 105.90, TP: 106.75/ 107/ 107.90.
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