FxWirePro: USD/JPY upside pauses at 114 handle, slips lower from 5-week highs amid risk-off action

USD/JPY chart on Trading View used for analysis

• USD/JPY hit 5-week highs above 114 handle as widening UST-JGB yield spreads across the curve-supported upside.
   
• However, the pair failed to hold gains and is currently trading at 113.89, down 0.14% on the day.
   
• Results of the US elections and a hawkish FOMC that maintained the sentiment is likely to carry the dollar higher.
   
• Fed voted unanimously to leave interest rates unchanged and maintained its hawkish guidance.
   
• The statement saw few changes and overall continued to acknowledge the robust economy and more gradual rate increases.
   
• According to CMIE group’s FedWatch tool , the likelihood of the Fed raising rates by 25 bpbs in Dec is 75%.
   
• The pair trades with a bullish bias. We see some overbought pressures on oscillators, but pullbacks are likely to be minor and we would recommend buying on dips.

Major Support - 112.97 (cloud top), 111.76 (110-EMA)

Major Resistance - 114.55 (Oct 4th high), 114.74 (Nov 2017 high) 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-bounces-off-daily-cloud-positive-momentum-likely-to-continue-good-to-go-long-on-dips-1450650) has hit all targets.

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