FxWirePro: USD/JPY outlook weaker on renewed downside pressure

• USD/JPY declined on Monday as tensions over North Korea fuelled safe-haven demand, while doubts about U.S. President Donald Trump's ability to enact pro-business policies weakened the dollar.
   
• Investors braced for North Korea's response to computer-simulated military exercises begun by South Korean and U.S. forces on Monday that will continue until Aug. 31.
   
• Investors were also looking ahead to an annual meeting of central bankers this week in Jackson Hole, Wyoming, with European Central Bank President Mario Draghi and U.S. Federal Reserve Chair Janet Yellen to speak on Friday.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 109.29 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• To the upside, the strong resistance can be seen at 108.99, a break above this level would take the pair towards next resistance level at 109.29.
   
• To the downside immediate support can be seen at 108.69, a break below this level will open the gates towards next level at 108.30.
  
  Resistance Levels
  
  R1: 108.99 (50% Retracement level)
  
  R2: 109.29 (61.8% Retracement level)
  
  R3: 109.38 (Aug 18th high)
  
  Support Levels
  
  S1: 108.69 (38.2 % Retracement level)
  
  S2: 108.30 (23.6 % Retracement level)
  
  S3: 108.00 (Psychological level)

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