FxWirePro: USD/JPY Bounces Off Strong Trendline Support, Back Above 107 Handle

FxWirePro: USD/JPY Bounces Off Strong Trendline Support, Back Above 107 Handle

• USD/JPY is extending recovery above 107 handle after hitting fresh 18-month lows at 105.54 on Tuesday's trade. 
• Selling across the Asian markets appear to have stalled amid thin trades and limited volatility as the Japanese markets remain closed for the week. 
• US ADP jobs data, ISM non-manufacturing PMI and factory orders data lined up for release later in the NY session will be watched for influence on the pair. 
• Immediate resistance is located at 107.44 (daily high) ahead of 108 and then 108.44 (April 11th highs). 
• While to the downside, the immediate support is seen at 106.90(5-DMA), then 106.52 (daily low) and below that at 106 (round number). 
• Weakness only on breaks below 105.50 (trendline support). A close above 5-DMA (106.90) could see further upside. 
• Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-hits-fresh-18-month-lows-on-track-to-test-10550-203202) has achieved all targets.
  

Recommendation: For now we would wait for further confirmation to enter longs. 

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