USD/JPY pares gains as upside remained capped below 5-DMA at 113.61.
The major tracked US-Japan 10-year yield spread lower and brushed aside hawkish Yellen's comments.
Technical indicators on daily charts have turned bearish, RSI and Stochs have rolled over from overbought levels and MACD is on verge of bearish crossover.
Immediate support is seen at 20-DMA at 112.50. Violation there could see downside upto 112.15 (38.2% Fib).
Focus remains on US monthly PPI and weekly jobless claims release along with day 2 of Yellen testimony.
Support levels - 112.50 (20-DMA), 112.15 (38.2% Fib retrace of 118.662 to 108.130 fall)
Resistance levels - 113.61 (5-DMA), 114, 114.63 (61.8% Fib)
Good to go short on rallies around 113/113.15, SL: 113.65, TP: 112.50/ 112.15
The major tracked US-Japan 10-year yield spread lower and brushed aside hawkish Yellen's comments.
Technical indicators on daily charts have turned bearish, RSI and Stochs have rolled over from overbought levels and MACD is on verge of bearish crossover.
Immediate support is seen at 20-DMA at 112.50. Violation there could see downside upto 112.15 (38.2% Fib).
Focus remains on US monthly PPI and weekly jobless claims release along with day 2 of Yellen testimony.
Support levels - 112.50 (20-DMA), 112.15 (38.2% Fib retrace of 118.662 to 108.130 fall)
Resistance levels - 113.61 (5-DMA), 114, 114.63 (61.8% Fib)
Good to go short on rallies around 113/113.15, SL: 113.65, TP: 112.50/ 112.15
Bias lower, 200-DMA at 111.70 in sight.