Chart - Courtesy Trading View
USD/JPY slips below 136 handle after news of ex-Japan PM Shinzo Abe shot hit the wires. The Japanese Yen found safe-haven bids following the unfortunate news, dragging the pair lower.
The release of the downbeat US ISM Services New Orders Index data has triggered the downside risk for the DXY. The US ISM New Orders Index landed at 55.6, significantly lower than the estimates and the prior print of 62.1 and 57.6 respectively.
Going forward, focus will be on the US Nonfarm Payrolls (NFP) for impetus. US economy is expected to have added 270k jobs, significantly lower than the former 390k. The Unemployment Rate is likely to remain stable at 3.6%.
Technical Analysis:
- USD/JPY trades below 200H MA.
- The pair is holding support at 20-DMA and break below will see more weakness
- RSI is biased lower, Stochs show bearish rollover from overbought levels
- Bearish RSI divergence adds to the downside bias
- Chikou span is biased lower, MACD shows bearish crossover on signal line
Major Support Levels: 135.32 (20-DMA), 134.80 (21-EMA)
Major Resistance Levels: 135.77 (5-DMA), 137.30 (Upper BB)
Summary: USD/JPY poised for further weakness. Watchout for break below for further downside.


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