The Japanese yen buoyed on robust manufacturing PMI data. Japan Jan Nikkei manufacturing PMI flash increased to 54.4 vs previous 54.
The pair was rejected at major resistance which was tested several times in the past few days.
We see invalidation only on breakout at resistance currently at 89 levels.
Technical studies are turning . is biased lower and Stochs have rolled over from overbought levels.
On the downside, we see scope for test of 100-DMA at 87.31. And violation there could see further downside.
Support levels - 87.65 (34 ), 87.31 ( 100-DMA ), 86.71 (cloud top)
Resistance levels - 88.19 ( 20-DMA ), 88.48 (5-DMA), 89 ( )
Good to go short on rallies around 88.05, SL: 88.50, TP: 87.65/ 87.30/ 87