USD/JPY slips along trendline resistance, downside bias builds
Nikkei Japanese manufacturing PMI reading combined with industry activity index and domestic exports/imports data helped USD/JPY hit session highs at 110.23.
But the major unable to hold gains, slips below the 110 handle to currently trade around 109.83.
Stiff resistance at the 110.50-60 zone, 55-EMA (110.47), major trendline (110.50) and cloud base (110.19). 23.6% Fib of June 2015 to May 2016 fall also lies at 110.34.
Pair now edges below 5-DMA support at 109.85, next immediate support on the downside lies at 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.
Sell rallies around 110 levels, SL: 110.60, TP: 109.30/109.15/108.95/108.80
Bearish invalidation on break above 110.60. Pair could then target 111.80 levels.
But the major unable to hold gains, slips below the 110 handle to currently trade around 109.83.
Stiff resistance at the 110.50-60 zone, 55-EMA (110.47), major trendline (110.50) and cloud base (110.19). 23.6% Fib of June 2015 to May 2016 fall also lies at 110.34.
Pair now edges below 5-DMA support at 109.85, next immediate support on the downside lies at 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.
Sell rallies around 110 levels, SL: 110.60, TP: 109.30/109.15/108.95/108.80
Bearish invalidation on break above 110.60. Pair could then target 111.80 levels.
