FxWirePro: USD/JPY finds strong support at 100-DMA (108.16), break below to see further weakness

• USD/JPY recovered from new 4-week lows at 108.11 to close higher at 108.75 on Tuesday's trade.
   
• Safe haven yen posted broad-based gains amid widespread risk aversion and we expect a deeper drop in the USD/JPY pair.
   
• Trade wars back in vogue. Trump has set dates for June for various tariffs on Chinese imports ahead of the next round of talks with Bejing due to take place as soon as this weekend. 
   
• Treasury yields recovery from 6-week lows. Rising Treasury yields may end up pushing the greenback lower.
   
• Technically, the pair trades with a major bearish bias, scope for further downside.
   
• Currently we see strong support at 100-DMA at 108.16, break below to see further weakness.

Support levels - 108.27 (50-DMA), 108.16 (100-DMA), 108, 107.65 (Apr 23 low)

Resistance levels - 108.81 (38.2% Fib), 109.08 (5-DMA), 109.80 (23.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-recovery-fails-to-hold-above-21-EMA-bearish-divergence-raises-scope-for-further-weakness-1335531) has hit all targets.

Recommendation: Book partial profits at lows. Trail SL to 109. Watch out for break below 100-DMA for further weakness. Targets revised lower to 108/ 107.65.

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