USD/JPY chart - Trading View
Fundamental Overview:
USD/JPY was trading 0.25% lower on the day at 108.16 at around 02:30 GMT. The pair showed a brief dip below 108 handle and has since pared some losses.
Shift in trading sentiment amid geopolitical tensions concerning Korea, Libya and China strengthen the Japanese yen. The US 10-year Treasury yields drop three basis points to 0.855%.
On the data front, Japan’s April month Labor Cash Earnings dropped to -0.6%, more than the forecasted 0.6%.
Traders now await Japan's May month preliminary Machine Tools Orders (due 06:00 GMT). U.S. inflation data due Wednesday is also likely to have a major impact.
Technical Analysis:
Technical indicators for the major are shifting bearish. Price action has slipped below 200-DMA and 200H MA. 2H 200 SMA is offering support at 107.97.
Oscillators paint a bearish picture. RSI is now biased lower and Stochs are on verge of rollover from overbought levels.
Ichimoku analysis shows Chikou Span is sharply lower. The pair is currently holding support at Kijun Sen at 107.91, break below will see more weakness.
Analysis of GMMA indicator shows major and minor trend have shifted strongly bearish on the hourly charts. And breach below 200H MA reinforces downside.
Summary: Pivot points are 2H 200 SMA and Kijun Sen at 109.97 and 107.91. Watch out for decisive break below to take short positions. Next hurdle for bears is cloud top at 107.53. Break below will see drag till lower Bollinger band at 106.52.
