FxWirePro: USD/JPY struggles at 110-EMA, bearish divergence raises scope for downside

USD/JPY chart on Trading View used for analysis

• USD/JPY is trading in a narrow range on the day, at 110.67 at 0500 GMT.
   
• Recovery in the pair is capped at 110-EMA at 110.90
   
• Markets remain wary over the US-China trade progress despite US President Trump tariff deadline delay.
   
• The sentiment is turning cautious and as a result we are seeing some bids for the safe-havens.
   
• The major is extending sideways, capped below 110-EMA, upside only on break above. Scope then for test of 200-DMA at 111.30.
   
• On the downside, we see immediate support at 55-EMA at 110.47. Break below 21-EMA will see further downside.

Support levels - 110.47 (55-EMA), 110.28 (21-EMA), 109.45 (converged cloud top and trendline)

Resistance levels - 110.90 (110-EMA), 111, 111.30 (200-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.