FxWirePro: USD/JPY under pressure amid negative equities, UST-yields, slips below 108 handle, bias lower

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.