FxWirePro: USD/JPY Corrects Lower from FOMC Led Rally, 110.50-60 Stiff Resistance Zone - Go Long on Break above 110.60
- FOMC minutes were the main catalyst overnight, revealed that the US interest rate hike is back on the cards this June.
- USD/JPY spiked all the way to hit session highs at 110.26 as the dollar edged higher across the board post FOMC.
- Our call (http://www.econotimes.com/FxWirePro-USD-JPY-holds-above-5-DMA-stay-long-209028) has hit all targets.
- The pair finds stiff resistance at the 110.50-60 zone, which is a combination of 55-EMA (110.51), major trendline (110.50) and cloud base (110.57).
- Upside pressure on the yen remains on the back of upbeat Japanese Q1 GDP which took immediate pressure off the BOJ to add stimulus.
- Technical indicators on weekly charts support upside in the pair. Break above 110.60 will see gains upto 111.80.
Recommendation: Go long on break above 110.60, SL: 110, TP: 111/111.80