FxWirePro: USD/JPY subdued on Profit Taking, Finds Strong Support at 111.04

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. 
  

The material has been provided by InstaForex Company - www.instaforex.com