FxWirePro: USD/JPY holds 55-EMA support, bearish divergence keeps scope for downside

USD/JPY chart - Trading View 

• USD/JPY pauses downside at 111 handle, trades at 111.10 at 0350 GMT.
   
• US dollar on the back-foot after mixed NFP data on Friday, the pair closed sharply lower.
   
• The pair has broken below 200-DMA and 'Bearish divergence' keeps scope for further weakness.
   
• JPY continues to gather strength as a safe-haven as risk-aversion rises in the market.
   
• Focus this week shall be on U.S. data which includes Retail Sales (later today), CPI (Tuesday 1230 GMT), Durable Goods (Wednesday 1230 GMT), UMitch Consumer Sentiment (Friday 1400 GMT).
   
• Also, the Bank of Japan policy meeting will be watched for further impetus.
   
• The major is holding support at 55-EMA and break below will see dip till 109.85 (trendline).
   
• On the flipside, 200-DMA is major resistance at 111.39. Retrace above negates bearish bias.

Support levels - 110.77 (55-EMA), 110.06 (Lower BB), 109.85 (Trendline)

Resistance levels - 111.39 (200-DMA), 111.50 (5-DMA), 112

Recommendation: Watch out for break below 55-EMA to go short.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.