FxWirePro: USD/JPY eyes 109 handle, risk-off offers fresh lift to JPY bulls

USD/JPY chart on Trading View used for analysis

• USD/JPY trades 0.06% lower on the day at 109.26 at 0500 GMT, bias lower.
   
• The pair is extending weakness as the safe-haven Japanese yen remains in demand amid risk-off.
   
• USD bulls remian on the side lines ahead of the Fed’s two-day policy meeting and trade talks between China and the US.
   
• Focus will be on US CB consumer confidence data due later in the NY session along with Japanese trade figures. 
   
• Technical studies are bias lower, upside capped at 5-DMA, RSI and Stochs are biased lower.
   
• 20-DMA is strong support on the downside, break below will see further weakness.
   
• Scope then for test of 61.8% Fib at 108.41. Further weakness can see downside till 78.6% Fib at 106.75.

Support levels - 108.95 (20-DMA), 108.41 (61.8% Fib), 107.77 (Jan 10 low)

Resistance levels - 109.48 (5-DMA), 109.58 (21-EMA), 110.66 (55-EMA)

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