FxWirePro: USD/JPY struggles to extend recovery from 3-month lows, 'Dragonfly Doji' on daily charts raises scope for upside

USD/JPY chart - Trading View 

• USD/JPY is extending sideways grind as the pair struggles to extend recovery from 3-month lows.
   
• Risk sentiment remains the main driver for price action. Technical studies still biased lower.
   
• A 'Dragonfly Doji' on daily charts raises scope for upside. Break above 5-DMA could see some upside.
   
• The Trump administration laid grounds to ban China’s Huawei from the US telecom sector citing national security threat. US-Iran tension also weighs.
   
• Price action currently hovers around 1H 21-EMA. 1H 110-EMA at 109.67 is stiff resistance above which we could see gains till 110.52 (21-EMA).
   
• Failure to build upside momentum could see weakness till 108.90 (falling trendline), ahead of 108.52 (50% Fib).

Support levels - 109, 108.90 (trendline), 108.52 (50% Fib)

Resistance levels - 109.58 (5-DMA), 109.67 (1H 110-EMA), 110.52 (21-EMA)

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