FxWirePro: USD/JPY at a Near-Term Top, Upside Stalls at 110.38 Highs
- USD/JPY trades a narrow 22 pip range in the Asian session. Pair is likely approaching a near-term top.
- USD/JPY pair declined from highs near 110.38 on Thursday following negative Philadelphia Fed Manufacturing Index in the early US session.
- 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).
- Technical indicators on weekly charts support upside in the pair. Break above 110.60 will see gains upto 111.80.
- 5-DMA at 109.67 is strong support on the downside, breaks below can see weakness upto 108.80 levels.
- G7 summit, sales tax decision, and other policy initiatives are significant drivers for the JPY in the period ahead.