FxWirePro: USD/JPY finds major support at 109.40, good to go short on break below

• USD/JPY trades 0.44% lower on the day, breaks below 110 handle, bias lower.
   
• Price action is below daily cloud and major moving averages.


• We see major support at 109.40 (channel base). Break below required for further weakness.
   
• Rising US - North Korea tensions keeping the safe haven Japanese yen in demand.
   
• Momentum studies on weekly charts are bearish. RSI below 50 and biased lower.
   
• Break below 109.40 could accentuate weakness. Scope then for test of 107.40 levels.

Support levels - 109.40 (channel base), 109, 108.80 (June 14 low), 108.13 (Apr 17 low)

Resistance levels - 110, 110.13 (5-DMA), 111.23 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-extends-post-NFP-rally-breaks-1H-200-SMA-good-to-go-long-on-dips-840077) has been stopped out.

Recommendation: Watch out for break below channel base at 109.40 to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 74.2656(Neutral), while Hourly JPY Spot Index was at 62.4422 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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