Comments from the Chinese President Xi, who talked up the prospects of boosting the country’s trade and imports with the US triggered risk-off moods, lifting the safe-haven Yen.
Also, uncertainty around the US tax reforms keeps the US dollar on the back foot, collaborating to the weakness in USD/JPY .
Technical studies have turned . and Stochs are biased lower.
Focus on the US tax reforms, which is expected to have a significant impact on the USD price-action.
The pair is currently hovering around strong support at 20-DMA at 113.40. We see weakness on break below.
On the flipside, major resistance seen at 114.45. We see invalidation only on break above.
Support levels - 113.40 (20-DMA), 112.98 (23.6% Fib retrace of 107.318 to 114.73 rally), 112.16 (50-DMA)
Resistance levels - 113.81 (5-DMA), 114, 114.45 ( )
Good to go short on break below 20-DMA, SL: 113.85, TP: 113/ 112.50/ 112.20.
Holds 38.2% Fib support. Further weakness on break below 111.70 levels.
Scope the for test of 111.