FxWirePro: USD/JPY extends weakness amid fresh risk-off, retraces below 111 handle

USD/JPY chart - Trading View 

USD/JPY was trading 0.40% lower on the day at 110.75 at 02:50 GMT, after closing largely unchanged in the previous session.

Downside in the pair gathers pace amid fresh risk-off, price slips below 111 handle.

Sentiment soured across markets as the US Senate was grappling with last-minute hurdles to pass the $2 trillion coronavirus stimulus bill.

S&P 500 futures slipped lower, were down 0.82% at the time of writing and selling gather pace if the Senate fails to approve the bill.

Despite today's fall and back-to-back Doji's in the previous 2 sessions, technical indicators for the pair hold a neutral bias.

On the intraday charts, price action has held support at 110H EMA, and also finds strong support at daily cloud.

Also, fresh reports said the Senate is on track to vote on the bill. Price action will track coronavirus (COVID-19) news.

The weekly reading of US Jobless Claims will be keenly watched for price action. 

Major Support Levels: 

S1: 110.45 (110H EMA, 2H 55-EMA)

S2: 110.25 (Daily cloud)

S3: 109.23 (200H MA)

Major Resistance Levels: 

R1: 110.98 (55H MA)

R2: 111.71 (Mar 24 high)

R3: 112 (Psychological mark)

Summary: Back-to-back Doji formations suggest consolidation in narrow price range likely. Break below 200H MA (109.23) will confirm a range breakdown.