USD/JPY chart - Trading View
USD/JPY grinds lower for the 3rd straight session, bias remains bearish.
The major was trading 0.09% lower on the day at 106.60 at around 05:20 GMT.
Broad-based US dollar weakness amid risk-off weighs on the pair. Republican leader’s comments challenging the US-China trade deal were the latest catalysts.
A drop in the rate of virus-led fatalities could help reset risk. While, holiday-thinned trading (Golden Week holiday period in Japan) could exaggerate price moves.
Analysis of GMMA indicator shows major and minor trend are bearish. Volatility is rising and upside remains capped below 5-DMA.
'Death Cross' (bearish 50-DMA crossover on 200-DMA) to plummet prices. Price action hovers around 50% Fib. Drag till 61.8% Fib (105.20) likely.
Major Support Levels:
- S1: 106.44 (50% Fib)
- S2: 106
- S3: 105.20 (61.8% Fib)
Major Resistance Levels:
- R1: 106.79 (5-DMA)
- R2: 107.05 (200H MA)
- R3: 107.40 (21-EMA)
Summary: Major and minor trend are bearish, scope for further weakness. Focus on U.S. PMI data for further impetus.


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