FxWirePro: USD/JPY capped at 5-DMA, further corrective downside likely

• USD/JPY slips lower as Greenback fails to hold onto gains, closed largely unchanged around 109 handle on Monday's trade.
   
• Upside was capped at 5-DMA at 109.40. Price action rages in a narrow range on the day.
   
• The pair has formed a 'Bearish Cypher' pattern on daily charts which keeps scope for downside.
   
• RSI and Stochs have shown a rollover from overbought levels and are biased lower.
   
• The major finds strong support at 100-DMA at 108.63, break below will see drag lower.
   
• On the flipside 5-DMA is immediate resistance at 109.23. Break above to see next major resistance at 110.18 (200-DMA).
   
• No major data on the docket for the pair today. Focus remains on speech by the US Fed's Jerome Powell due at 09:00 GMT.

Support levels - 108.63 (100-DMA), 108.49 (38.2% Fib), 108.41 (20-DMA)

Resistance levels - 109.23 (5-DMA), 109.68 (50% Fib), 110, 110.18 (200-DMA)

Recommendation: Good to go short on rallies around 109.05/15, SL: 109.50, TP: 108.65/ 108.50/ 108.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -43.4638 (Neutral), while Hourly JPY Spot Index was at 120.247 (Bullish) at 0145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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