FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(USDCAD and EURJPY) for the day
FxWirePro: USD/JPY Daily Outlook
Chart - Courtesy Trading View
USD/JPY was trading 0.24% higher on the day at 128.10 at around 09:50 GMT.
The pair is consolidating break below 21-EMA, scope for further weakness seen.
Dollar remains under pressure after a decline in U.S. yields as investors rushed for the safety of Treasury bonds.
The benchmark 10-year Treasury yield sank overnight to a more than three-week low of 2.772%, from a 3 1/2-year high of over 3.2% earlier this month.
Concerns grew that the Fed and other central banks have fallen behind the curve in combatting super-hot inflation, and will need to be ever more aggressive in tightening policy, which could impact growth.
Momentum is bearish. Stochs and RSI are sharply lower. MACD and ADX support downside in the pair.
Major Support Levels:
S1: 127.17 (Lower BB)
S2: 125.30 (55-EMA)
Major Resistance Levels:
R1: 128.46 (21-EMA)
R2: 129.25 (20-DMA)
Summary: USD/JPY trades with a bearish bias. Scope for test of 55-EMA at 125.30.