FxWirePro: USD/JPY consolidates previous session's slump, break below 55-EMA (110.50) to see further weakness

USD/JPY chart on Trading View used for analysis

• USD/JPY is trading in a narrow range, with session highs at 110.618 and lows at 110.513.
   
• The pair is consolidating previous session's slump after dovish Fed comments.
   
• On Tuesday, Fed Chair Powell reiterated patience on rate hikes and took note of the risks to the US economy. 
   
• Both treasury yields and the US dollar weakened after Powell's dovish testimony and are expected to remain under pressure today. 
   
• Technical indicators for the major are neutral to slightly bearish on the daily charts.
   
• Strong support is seen at 55-EMA at 110.50. Break below will accentuate weakness. Dip till daily cloud at 109.44 then likely.
   
• On the flipside 110-EMA at 110.90 is strong resistance. Upside only on decisive break above.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.