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FxWirePro: USD/JPY breaks below daily cloud, outlook bearish

USD/JPY chart - Trading View 

USD/JPY was trading 0.12% lower on the day at 109.17 at around 10:40 GMT, outlook bearish.

The pair is extending previous session's losses and has broken below daily cloud support raising scope for further downside.

Federal Reserve's Christopher Waller on Monday said the central bank could start to reduce its support by October if the next two monthly jobs reports each show employment rising by 800,000 to 1 million, as he expects.

Investors wary, prefer not to take big positions ahead of key U.S. non-farm payroll data due later this week.

Price action is now below 200H MA, the pair hovers around immediate support at 110-EMA at 109.08. 

Technical analysis supports downside. Momentum is with the bears. Break below 110-EMA will see more downside. 

Next major support lies at 200-week MA at 108.85. Breach below 200-week MA will open downside. 
 

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