USD/JPY tracks fall in the US 10-year treasury yield and the flattening of the yield curve. The major hit lowest level for the month at 113.03 before paring some losses. Upbeat Japanese GDP number released earlier today failed to impress yen bulls. Focus now on US retail sales and inflation numbers which could influence the Fed rate hike odds and in turn the USD. Technical studies have turned bearish, RSI and Stochs sharply lower. The pair has broken below 20-DMA. Bearish divergence of RSI and Stochs from price action keeps scope for downside. 50-DMA at 112.48 in sight. Retarce above 20-DMA currently at 113.63 invalidates bearish bias.
Support levels - 112.98 (23.6% Fib retrace of 107.318 to 114.73 rally), 112.48 (50-DMA), 111.90 (38.2% Fib) Resistance levels - 113.45 (5-DMA), 113.63 (20-DMA), 114, 114.50 (trendline)
Update: Previous short call progressing well. TP1 hit. Bias lower.