FxWirePro: Cloud caps upside in USD/JPY, good to go short on break below 200-DMA at 110.70

• USD/JPY capped below daily cloud, slips below 50-DMA at 111.15, bias lower.
   
• USD subdued as investors consider the possibility of the delay in the Fed rate hike beyond December.
   
• Technical indicators on daily charts are mildly bearish. Spinning top formation seen on Wednesday's candle.
   
• RSI is biased lower but is holding above 50 levels. Stochs are on verge of rollover from overbought levels.
   
• The major finds strong support at 200-DMA at 110.70, break below will raise scope for downside.
   
• Confirmation on Stochs rollover and RSI below 50 will add to downside bias.
   

Support levels - 110.70 (200-DMA), 110, 109.77 (June 13 low), 109.20 (trendline)

Resistance levels - 111.15 (50-DMA), 111.80 (100-DMA & cloud top), 112, 112.15 (38.2% Fib of 118.662 to 108.130 fall)

Recommendation: Good to go short on break below 200-DMA, SL: 111.20, TP: 110/ 109.75/ 109.20

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -60.8108 (Neutral), while Hourly JPY Spot Index was at 156.991 (Bullish) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.