USD/JPY breaks below 100-DMA, good to go short on rallies
USD/JPY has broken below major support by 100-DMA at 113.13, scope for downside builds.
The pair is tracking DXY lower, amid holiday-thinned markets (Japan closed for Vernal Equinox Day) and lack of fresh fundamental drivers.
FOMC meeting last week which stressed gradualism in its tightening cycle.
The U.S. data calendar this week’s is thin with focus on new and existing home sales, and durable goods orders.
Technical studies are bearish, RSI and stochs are biased lower and MACD has shown a bearish crossover on signal line.
112 levels in sight, violation there could see test of 111.60 and then 111 levels.
Fedspeak from Evans, George, Mester, Kashkari, Kaplan, Bullard and Yellen will be closely watched.
Support levels - 112, 111.68 (Feb 28 low), 111.35 (Nov 28, 2016 low), 111.07 (38.2% Fib retrace of 98.78 to 118.66 rise)
Resistance levels - 113.13 (100-DMA), 113.32 (5-DMA), 113.67 (cloud base)
Good to go short on rallies around 112.60/70, SL: 113.20, TP: 111.70/ 111.35/ 111
The pair is tracking DXY lower, amid holiday-thinned markets (Japan closed for Vernal Equinox Day) and lack of fresh fundamental drivers.
FOMC meeting last week which stressed gradualism in its tightening cycle.
The U.S. data calendar this week’s is thin with focus on new and existing home sales, and durable goods orders.
Technical studies are bearish, RSI and stochs are biased lower and MACD has shown a bearish crossover on signal line.
112 levels in sight, violation there could see test of 111.60 and then 111 levels.
Fedspeak from Evans, George, Mester, Kashkari, Kaplan, Bullard and Yellen will be closely watched.
Support levels - 112, 111.68 (Feb 28 low), 111.35 (Nov 28, 2016 low), 111.07 (38.2% Fib retrace of 98.78 to 118.66 rise)
Resistance levels - 113.13 (100-DMA), 113.32 (5-DMA), 113.67 (cloud base)
Good to go short on rallies around 112.60/70, SL: 113.20, TP: 111.70/ 111.35/ 111
Comment:
All targets hit.
Weekly cloud at 111.27 is strong support.
Close below weekly cloud top could see an extension of weakness next week.
Weekly cloud at 111.27 is strong support.
Close below weekly cloud top could see an extension of weakness next week.
Capped below 5-DMA, bias lower.