FxWirePro: USD/JPY fails to hold above 110 handle, good to go short on break below major support at 109.50

• USD/JPY pulled back from 2-month lows at 109.55, but 5-DMA at 110.33 weighs on the upside, intraday bias bearish.
   
• The pair is extending gradual grind lower. Price action is below daily cloud and major moving averages.
   
• We see major support at 109.50 (trendline). Break below required for further weakness.
   
• Momentum studies on weekly charts are bearish. RSI below 50 and biased lower.
   
• Break below 109.50 could accentuate weakness. Scope then for test of 107.40 levels.
   
• Focus on the release of US PPI print and weekly jobless claims for further direction.

Support levels - 109.50 (trendline), 109, 108.80 (June 14 low), 108.13 (Apr 17 low)

Resistance levels - 110, 110.32 (5-DMA), 111.06 (20-DMA)

Recommendation: Watchout for break below 109.50 to go short, SL: 110.35, TP: 109/ 108.80/ 108.15

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 54.9042 (Neutral), while Hourly JPY Spot Index was at 155.319 (Bullish) at 1020 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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