FxWirePro: USD/JPY pauses downside at cloud base, poised for further weakness

Chart - Courtesy Trading View 

USD/JPY was trading 0.05% lower on the day at 114.67 at around 04:30 GMT.

The pair has edged higher from session lows at 114.49, finds strong support at cloud base.

The safe-haven yen hit a near three-week high as Russia ordered troops into breakaway parts of eastern Ukraine and the region stood on the brink of war.

On the data front, Japan’s Corporate Service Price Index rose 1.2% in January, versus 0.7% forecast and 1.1% expected.

Preliminary readings of February US PMIs due later on Tuesday will be crucial for further direction after the recently softer Fedspeak.

Technical bias for the pair is bearish. Break below 55-EMA and cloud support will drag the pair lower.

Major Support Levels: 

S1: 114.64 (55-EMA)

S2: 114.44 (Cloud base)

S3: 114

Major Resistance Levels: 

R1: 114.96 (5-DMA)

R2: 115.03 (21-EMA)

R3: 115.14 (20-DMA)

Summary: USD/JPY pivotal at cloud support. Break below will plummet prices. Scope for dip till 114 (trendline support).