FxWirePro: USD/JPY Slips Below 110 Handle, Intraday Bias Lower, Good to Sell Rallies
- Nikkei Japanese manufacturing PMI reading combined with poor domestic exports/imports data helped USD/JPY hit session highs at 110.23.
- Japan all industry activity index (mom) registered at 0.1%, below expectations (0.7%) in march.
- But the major unable to hold gains, slips below the 110 handle to currently trade around 109.92.
- 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).
- 23.6% Fib of June 2015 to May 2016 fall also lies at 110.34.
- Technical indicators on weekly charts support upside in the pair. Break above 110.60 will see gains upto 111.80.
- 5-DMA at 109.85 is immediate support on the downside ahead of 10-DMA at 109.35, breaks below can see weakness upto 108.80 levels.
- Durable goods and GDP figures from the US, Japanese CPI data and Fed Chair Yellen’s comments to be in focus this week.
Recommendation: Sell rallies around 110 levels, SL: 110.60, TP: 109.30/109.15/108.95/108.80