USD/JPY chart - Trading View
USD/JPY slumps in the Asian session to hit 2-week lows at 109.12.
The pair dives as China's retaliation plan strengthens bid tone around JPY.
China said that it is ready with a plan to limit rare earth exports to the US if needed.
Technical studies have always been bearish as noted in our previous article.
Upside has been capped below 21-EMA and technical charts are biased lower.
A 'Dravestone Doji' formation on daily charts seen on Thursday's candle.
Scope for test of trendline support at 108.75. Break below will see further weakness.
Support levels - 108.75 (Falling Trendline), 108, 107.61 (61.8% Fib)
Resistance levels - 109.45 (5-DMA), 109.96 (21-EMA), 110
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
