FxWirePro: USD/JPY rejected at cloud and 21-EMA, dip till 108.80 likely

USD/JPY chart - Trading View 

USD/JPY consolidates previous sessions losses, trades rangebound in the Asian session.

Recovery in the pair was capped at 21-EMA and cloud resistance.

Risk-off sends US yields lower aiding yen's rise. Poor U.S. data also weighed on the greenback.

U.S. Manufacturing PMI fell 2 points to 50.6 which was the lowest level since 2009 while US Services PMI fell 2.1pts to 50.9, a three-year low. 

Further, U.S. new home sales lost -6.9% in April while US jobless claims offered some solace for the greenback, coming at 211k last week. 

The pair has resumed downside and we see scope for dip till 108.80 (trendline support).

Stochs and RSI have turned and Stochastics RSI is showing a rollover from overbought.

Support levels - 108.80 (trendline), 108.50 (Jan 31st low), 107.61 (61.8% Fib)

Resistance levels - 110.01 (5-DMA), 110.30 (21-EMA), 110.86 (cloud top)

Recommendation: Good to stay short on upticks, SL: 110.60, TP: 108.80/ 108.50

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