FxWirePro: USD/JPY fades rallies amid general risk-off, breaks strong support at 21-EMA, bias lower

• USD/JPY trades 0.29% lower on the day at 109.42 at the time of writing.
   
• Bears fade rallies in the pair as general risk-off sentiment continues in the market.
   
• President Donald Trump called for the EU and China to remove trade barriers and tariffs, or face the consequences.
   
• The major fell from 110.03 highs on Monday, has closed below strong support at 21-EMA.
   
• UST 10yr yields were in a lower range of 2.86% and 2.90%, while the 2yr yields ranged between 2.52% and 2.55%.
   
• Technical indicators on daily charts are biased bearish. RSI and Stochs are sharply lower.
   
• Price action has dipped into daily cloud, we see scope for test of 100-DMA at 108.15. 
   
• On the flipside, only a decisive breakout at 200-DMA could see any meaningful upside.

Support levels - 109, 108.81 (38.2% Fib), 108.15 (100-DMA)

Resistance levels - 109.91 (21-EMA), 110, 110.20 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-on-the-defensive-escalating-US-China-trade-issues-weigh-1385922) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -74.4153 (Neutral), while Hourly JPY Spot Index was at 29.0531 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.