FxWirePro: USD/JPY tumbles further below 109 handle, selling pressure around the greenback aggravates

USD/JPY chart - Trading View 

USD/JPY dives lower for the second straight session as selling pressure around the greenback aggravates.

The dollar is being offered likely due to the unprecedented fiscal and monetary stimulus unveiled by the Fed and US government in the last five days.

Fed Chair Jerome Powell, in an interview this Thursday, told NBC Today that the US central bank still has room for more action to combat coronavirus crisis.

A record leap in the US initial weekly jobless claims for the week ended March 20 and a fresh leg down in the US Treasury bond yields add to the dollar woes.

USD/JPY was trading 1.03% lower on the day after closing 1.48% lower in the previous session.

Stochs and RSI have rolled over from overbought levels and are now biased lower. Scope for further downside.

Price action has slipped below 200H MA and is currently holding support at 200-DMA at 108.30.

Breach at 200-DMA support will open downside for the pair. 20-DMA is next immediate support at 107.70 ahead of 50% Fib retracement at 106.45.

Major Support Levels: 108.30 (200-DMA), 107.70 (20-DMA), 106.45 (50% Fib)

Major Resistance Levels: 108.95 (50-DMA), 109.94 (cloud base), 110.32 (5-DMA)