FxWirePro: USD/JPY struggles to hold above 110 handle, bearish divergence keeps scope for downside

• US dollar index has declined sharply after hitting highs of 93.42. USD/JPY struggles to hold gains above 110 handle. 
   
• The major edged higher from lows of 109.54 in Tokyo low to reach 110.01, before relapsing to 109.62 levels. 
   
• Price action hovers around 50% Fibos and technical studies support further upside in the pair. Scope for test of 61.8% Fib at 110.87 on bullish momentum. 
   
• That said, bearish divergence and 'Cypher Pattern' on daily charts keeps scope for downside. 
   
• 20-DMA is strong support at 108.68 levels. Break below to see further weakness.

Support levels - 109.33 (5-DMA), 109, 108.68 (20-DMA)

Resistance levels - 110, 110.87 (61.8% Fib), 111

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 44.4168 (Neutral), while Hourly JPY Spot Index was at -71.5166 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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