FxWirePro: USD/JPY Consolidates Overnight Losses, Downside Intact, Stay Short
- Japanese yen outperformed overnight on risk aversion, USD/JPY hit lows of 109.11.
- USD/JPY bulls were rejected at 110.58 last week and the downside took out the 109.70 level.
- The pair finds stiff resistance between 110.50-60 zone, 55-EMA (110.51), major trendline (110.50) and cloud base (110.57).
- 23.6% Fib of June 2015 to May 2016 fall at 110.34 also weihs on the upside.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-slips-below-110-handle-intraday-bias-lower-good-to-sell-rallies-211407) has hit targets 1&2.
- Concerns that the Fed might indeed hike in June with odds of such an event increasing with upbeat data keep downside limited.
- Immediate support now aligns at 10-DMA at 109.30, below which we can see weakness upto 108.80 levels.
Recommendation: Book partial profits, lower stops to 109.80, hold for targets.