FxWirePro: USD/JPY holds support at 5-DMA (107.17), close below to see further weakness

• The Japanese Yen remains bid in early Asian trade today, pushing USD/JPY lower.
   
• Yen is likely tracking declines in the Shanghai Composite index and the conflict in Syria will likely keep demand for the safe-haven.
   
• USD/JPY is losing altitude, trades 0.12 percent lower on the day, having clocked a session high of 107.61.
   
• The major finds strong support at 107.17 which is converged 5-DMA and cloud base. Break below will see further weakness. 
   
• Technical studies are supporting upside, we see scope for further gains on decisive close above key 107.50 resistance.
   
• Next major bull target above 107.50 lies at 38.2% Fib at 108.49. Break above could see test of 100-DMA at 109.23.
   
• On the flipside, break below 107.17 could see test of converged 50-DMA and 21-EMA at 106.74.

Support levels - 107.17 (nearly converged cloud base and 5-DMA), 107, 106.74 (21-EMA & 50-DMA)

Resistance levels - 107.50, 108, 108.49 (38.2% Fib), 109, 109.23 (100-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-tests-236-Fib-at-10701-bias-higher-stay-long-1237823) has hit all targets.

Recommendation: Watch out for close above 107.50 for further upside.

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