FxWirePro: USD/JPY fails at 112 handle, bearish divergence raises scope for downside

USD/JPY chart - Trading View

• USD/JPY is struggling to gather upside momentum, the pair has failed to break above 112 handle.
  
• The major is currently trading at 111.76, down 0.11% at 0400 GMT.
  
• Potential risk aversion in the stock markets keeps safe-haven bids for the Japanese yen intact.
  
• Technical bias remains neutral to slightly bullish. Breakout above 112 handle required for further upside.
  
• Focus on US ADP employment change and updates from the trade negotiations between the US and China.
  
• The ADP employment change is expected to weaken to 189K in February from 213K prior.
  
• The pair is currently holding 5-DMA support at 111.73. Break below eyes 200-DMA. Violation at 200-DMA negates any bullish bias.

Support levels - 111.73 (5-DMA), 111.35 (200-DMA), 110.97 (110-EMA)

Resistance levels - 112, 112.43 (78.6% Fib), 113

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