FxWirePro: USD/JPY resumes declines as greenback under renewed selling pressure, 50-DMA at 110.55 in sight

• US dollar came under renewed selling pressure after U.S. and EU agree to reduce trade tariffs denting risk assets.
   
• Trump and European Commission President Jean-Claude Juncker said they were working to eliminate tariffs and subsidies on non-auto industrial goods.
   
• On the data front, US new home sales decreased 5.3% to a seasonally adjusted annual rate of 631,000 units last month. 
   
• USD/JPY has resumed downside after retracing from lows of 110.66 hit on Wednesday's trade.
   
• The major is currently trading 0.16% lower on the day at 110.79 at the time of writing.
   
• Technical indicators support further weakness. 50-DMA at 110.55 is immediate support.
   
• Violation at 50-DMA wil take the pair lower to test 200-DMA at 110 levels.
   
• Focus now on U.S. durable goods, goods trade balance, wholesale inventories, initial jobless claims, KC Fed manufacturing index.  

Support levels - 110.55 (50-DMA), 110.08 (200-DMA), 109.91 (38.2% Fib)

Resistance levels - 111, 111.14 (5-DMA), 111.30 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-ignores-higher-UST-yields-plunges-on-Bullards-bearish-comments-good-to-go-short-on-upticks-1406607) is progressing well.

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -103.113 (Bearish), while Hourly JPY Spot Index was at 73.4035 (Neutral) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.