USD/JPY chart on Trading View used for analysis
- USD/JPY slips below 108 handle as US dollar succumbs to pressure amid negative equities and US Treasury yields.
- Risk aversion in the US stock futures and the resulting haven demand for the Japanese yen weighing on the pair.
- FOMC minutes overnight continue to represent the Fed's caution in raising rate.
- Also, US-China trade negotiations failed to produce a breakthrough deal.
- The pair is trading 0.30% lower on the day at 107.84 at 0400 GMT, bias lower.
- Price action has slipped below 5-DMA and is on track to test 78.6% Fib at 106.75.
- Momentum is bearish. Stochs have turned lower. MACD supports weakness.
- We see little support till 106.75 which is nearly converged 78.6% Fib and lower Bollinger Band.
- On the flipside, 5-DMA is immediate resistance at 108.40, decisive break above could see minor upside.
Support levels - 107, 106.75 (nearly converged 78.6% Fib and lower Bollinger Band)
Resistance levels - 108.40 (5-DMA), 109
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
