FxWirePro: USD/JPY Holds Major Support at 109.80, Weakness Only on Break Below
- USD remains bid as markets digest hawkish speeches from the Fed officials, Fed’s Powell suggested overnight that Fed should raise rates ‘fairly soon’.
- JPY also remained buoyed amid ongoing chatter that Japan’s PM Abe will soon announce delay in sales tax hike.
- USD/JPY is holding around major support around 109.80 levels (4H 5SMA @108.80, 10SMA @108.81 and 50SMA @108.78). Break below could see test of 109.55 (trendline support).
- On the upside, major resistance is seen at 110 (Trendline joining 110.45 and 110.20). Break above could see gains upto 110.35 and then 110.44.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-finds-stiff-resistance-at-10995-good-to-sell-rallies-213300) has hit all targets.
- Focus now remains on the US GDP numbers and Fed Chair Yellen’s speech, especially after we had weaker durable goods orders release a day before.
Recommendation: Buy breakout above 110, SL: 109.80, TP:110.35/110.45. Sell break below 109.80, SL: 110, TP: 109.55/109.40