FxWirePro: USD/JPY capped below 21-EMA, break below cloud eyes 200-DMA at 109.88

Refer USD/JPY chart on Trading View

• USD/JPY capped below 21-EMA at 111.08, trades 0.42% lower on the day.
   
• The pair  struggled to build on its early momentum beyond the 111.00 handle.
   
• Deterioration in investors' appetite for riskier assets, triggered by a sudden fall in the Turkish Lira, boosted the safe-haven yen.
   
• The pair finds immediate support at daily cloud, break below will see further weakness.
   
• Scope then for test of 200-DMA at 109.88. Violation there could see further weakness.
   
• On the flipside, breakout at 21-EMA could see upside continuation.

Support levels - 110.36 (cloud base), 110, 109.88 (200-DMA)

Resistance levels - 110.77 (5-DMA), 111.08 (21-EMA), 111.43 (Aug 15 high)

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -33.4664 (Neutral), while Hourly JPY Spot Index was at 111.899 (Bullish) at 1215 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.