FxWirePro: USD/JPY rangebound below 5-DMA, finds strong support at daily cloud

USD/JPY chart - Trading View 

USD/JPY holding steady above 107 handle, trades in narrow range with session high at 107.33 and low at 107.15.

The pair has paused 4 straight sessions of weakness as risk reset across markets dents haven demand for yen.

USD/JPY consolidates trade below 200-DMA. The pair was trading 0.03% higher at 107.26 at around 04:00 GMT.

A 'Death Cross' (bearish 50-DMA crossover on 200-DMA) formation on the daily charts keeps downside pressure in the pair.

Indicators are aligned for bearish push and upside remains capped at 5-DMA.

Daily cloud is major support and break below will confirm further weakness. Drag till 61.8% Fib at 105.20 then likely.

Strong resistance is seen at 21-EMA (107.82). Bearish invalidation only above 200-DMA (108.29).

Major Support Levels: 106.71 (Lower BB), 106.44 (50% Fib), 105.20 (61.8% Fib)

Major Resistance Levels: 107.82 (21-EMA), 108.29 (200-DMA), 108.47 (110-EMA)