The USD index accelerates its decline to hit fresh four-month lows of 91.75. Focus now turns towards the US final manufacturing PMI report due on the cards in the NA session.
USD/JPY recovery attempts capped at 5-DMA, the pair slips lower to hit fresh 3-week lows at 112.11. Price action has broken support at 112.50 (trendline) and 200W SMA at 112.38, bears now target 100-DMA at 112.00. Technicals studies for the pair hint further downside. Violation at 100-DMA could see further weakness. Scope then for test of 200-DMA at 111.65.
Stay short on rallies, SL: 112.90, TP: 112/ 111.65
Support levels - 112 (100-DMA), 111.90 (38.2% Fib retrace of 107.318 to 114.737), 111.65 (200-DMA)
Resistance levels - 112.76 (5-DMA), 112.93 (nearly converged 20 and 50-DMA), 113.63 (Dec 21 high)
USD/JPY recovery attempts capped at 5-DMA, the pair slips lower to hit fresh 3-week lows at 112.11. Price action has broken support at 112.50 (trendline) and 200W SMA at 112.38, bears now target 100-DMA at 112.00. Technicals studies for the pair hint further downside. Violation at 100-DMA could see further weakness. Scope then for test of 200-DMA at 111.65.
Stay short on rallies, SL: 112.90, TP: 112/ 111.65
Support levels - 112 (100-DMA), 111.90 (38.2% Fib retrace of 107.318 to 114.737), 111.65 (200-DMA)
Resistance levels - 112.76 (5-DMA), 112.93 (nearly converged 20 and 50-DMA), 113.63 (Dec 21 high)
The major is trading in a narrow range. Focus on Dec FOMC minutes.