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2017.04.2502:38:00UTC+00Fxwirepro: Usd/jpy Trades Above As Risk Appetite Improved, Good to Buy on Dips

  • USD/JPY shown a mild decline after a gap up yesterday. The pair jumped till 110.51 and is currently trading around 110.12.
     
  • Market awaits tax reform of Donald trump on Wednesday for further direction. It is expected that trump would seek to lower corporate tax to 15%from 35%. JPY trades lower after risk appetite has diminished after first round of French election.
     
  • The pair upside is capped by daily Kijun-Sen (110.51) and any break above will take the USD/JPY till 111.45 (100 –day EMA)/112.
     
  • The near term support is around 109.59 (38.2% retracement of 108.13 and 110.51) and any break below targets 109.
     
  • Short term bullish invalidation only below 108 and any break below will drag the pair down till 106.35 (61.8% retracement of 98.78 and 118.66)/105.
     
  • The momentum indicators like MACD and RSI is showing buy signal in the daily chart.

    It is good to buy on dips around 109.95-110 with SL around 109 for the TP of 112.

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