FxWirePro: USD/JPY briefly dips below 108 handle, risk-off market tones to keep downside pressure

USD/JPY chart - Trading View 

USD/JPY was trading 0.31% lower on the day at 108.02 at around 04:15 GMT.

The pair has retraced below 200-DMA and has briefly dipped below the 108 handle as bulls fail to maintain upside traction.

The  major has started the trading week on a bearish note amid wide-spread risk aversion ahead of  the corporate earnings data in the U.S.

Japanese Yen made gains as investors fretted the likely heavy hit to corporate earnings dealt by the coronavirus pandemic.

Holiday-thinned trace on account of Easter Monday is likely to limit market moves. Lack of major/events on the economic calendar leaves the pair to the mercy of coronavirus updates.

Technical indicators have turned bearish. Stochs and RSI show bearish momentum. 5-DMA has turned South and caps upside.

The pair is on track to test 38.2 Fib at 107.69. Further weakness will see test of Kijun Sen at 106.45.

On the flipside, 200-DMA is immediate resistance at 108.33. Failure to close below 200-DMA will negate any bearish bias. 

Major Support Levels: 107.69 (38.2% Fib), 107, 106.45 (Kijun Sen)

Major Resistance Levels: 108.33 (200-DMA), 108.68 (110-EMA), 108.91 (20-DMA)

Guidance: Stay short on upticks, SL: 108.40, TP: 107.70/ 107