FxWirePro: USD/JPY breaks below 200-DMA, hits fresh 6-week low of 109.73, bias lower

• USD/JPY broke below 200-DMA and hit fresh 6-week lows of 109.73, lowest level since April 25.
   
• Japan’s labor cash earnings were reported at a four-month high, thus strengthening bid tone around the Yen.
   
• Technical studies have turned bearish on break below 200-DMA. RSI is below 50 and biased lower.
   
• Price action has also broken below daily cloud and is now below all major moving averages.
   
• We see scope for test of 50% Fib of 98.787 to 118.662 rally at 108.72.
   
• Bearish invalidation if pair retraces losses and closes above 200-DMA.

Support levels - 109, 108.72 (50% Fib), 108.13 (Apr 17 low)

Resistance levels - 110.22 (200-DMA), 110.36 (cloud base), 111 (38.2% Fib)

Recommendation: Good to go short on rallies around 109.85, SL: 110.55, TP: 109/ 108.75

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -102.205 (Bearish), while Hourly JPY Spot Index was at 143.418 (Bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.