FxWirePro: USD/JPY edges lower amid broad US dollar retreat, near-term outlook remains bullish

USD/JPY chart - Trading View 

Fundamental Overview: 

The US Dollar Index (DXY) edges lower from the three-year high following the downbeat news from New York and California.

Also, Goldman Sachs projects U.S. jobless claims to hit a record high of 2.25 million for the week of March 15-21, adding to weakness in the greenback.

Market’s risk-tone remains light, the coronavirus (COVID-19) fears seems to favor the greenback.

Today’s US Existing Home Sales will be in focus along with the COVID-19 headlines for price movements.

Technical Analysis: 

USD/JPY was trading 0.45% lower on the day at 110.20 at 04:00 GMT, scope for upside resumption.

Price action has shown a decisive break above 200-DMA and daily cloud and short-term moving averages are biased higher.

The pair shows a bullish momentum and technicals do not support downside.

Strong supports are seen at 55H EMA at 109.11 and 110H EMA at 108.05. Break below could see dip till daily cloud.

Retrace below cloud will negate upside bias. 

Support levels - 109.11 (55H EMA), 108.05 (110H EMA)

Resistance levels - 112.08 (Upper BB), 112.22 (Feb 20th high)

Summary: Fears of a global recession continue to weigh on the markets’ risk-tone, near-term gains in the pair look likely only on sustained close above 200W SMA.