USD/JPY chart on Trading View used for analysis
- USD/JPY has started 2019 on a weaker note, risk-off sentiment weighs.
- Concerns about global economic slowdown, partial US shutdown, US-China trade war fears and the slump in global equities keep traders on the edge.
- The pair has resumed downside after a brief pause, extends weakness below 200-DMA.
- Price action has hit fresh 6-month lows at 109.33, has broken below 50% Fib.
- Technical studies support further weakness, scope for test of 61.8% Fib at 108.38.
- Break above 200-DMA could see upside till daily cloud. Breakout above cloud negates bearish bias.
Support levels - 109.20 (June 8 low), 109, 108.38 (61.8% Fib)
Resistance levels - 109.55 (50% Fib), 109.98 (5-DMA), 111.07 (200-DMA)
Recommendation: Good to go short on upticks, SL: 110, TP: 109.20/ 109/ 108.40
