FxWirePro: USD/JPY tracks Treasury yields lower, break into daily cloud will see dip till 109.30

USD/JPY chart - Trading View 

• USD/JPY is extending downside on the day, in sync with weakness in US Treasury yields.
   
• The major is trading at 110.16, down from session highs at 110.53, down 0.31% at 0345 GMT.
   
• The sell-off in Treasury yields gained traction in the Asian trades, as risk-off remains at full steam.
   
• Comments overnight from the to-be Fed Governor, Stephen Moore, also weighed on investor sentiment. 
   
• Technical studies are tilted towards the downside, price action below major moving averages.
   
• The pair failed to hold break above 50-DMA and now is testing support at daily cloud.
   
• Break below cloud top will see extension of weakness. Dip till 38.2% Fib at 109.27 then likely.
   
• Focus will be on updates from the two-day Beijing visit of the US delegates and the US Q4 GDP’s final version. 
   
• Markets expect 2.4% growth figure for the annualized gross domestic product during the fourth quarter against 2.6% in Q3.

Support levels - 110.06 (cloud top), 109.70 (Mar 25 low), 109.27 (38.2% Fib)

Resistance levels - 110.23 (5-DMA), 110.50 (50-DMA), 110.78 (55-EMA)

Recommendation: Go short on break below cloud top, SL: 110.50, TP: 109.70/ 109.30

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