FxWirePro: USD/JPY subdued on Profit Taking, Finds Strong Support at 111.04
- USD/JPY remains subdued in early Asian session as markets resort to profit taking at highs.
- The major broke above strong resistance at 109.90 and took out 110.40 to hit highs of 111.88.
- Markets cautious as we head towards major risk events in both the BoJ and FOMC, some profit taking seen.
- No change is expected from the FOMC. The Fed’s assessment on the economy may offer some insight into its rates outlook.
- The BoJ is expected to deliver more easing as the inflation outlook has become less favourable. A failure to deliver easing may drive JPY strength.
- USD/JPY is currently trading around 111.15 levels, finds strong support at 111.04 (Feb 24th lows and session lows till now).
- Technicals for the day are biased higher, but some weakness likely on intraday charts.
- Pair finds next resistance above 112 handle at 112.66 (cloud base) and then at 113 levels.
- CFTC positions released Friday April 22nd showed that aggregate USD position has fallen into bearish territory for the first time since May 2014.
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