USD/JPY chart - Trading View
USD/JPY was trading 0.73% lower on the day at 109.79 at around 08:00 GMT, slightly above session lows at 109.76.
The pair came under some heavy selling pressure on Thursday, dived over 0.75% to hit 2-week lows.
COVID-19 jitters amid rising cases of the Delta variant and the resulting risk-off mood benefitted the safe-haven JPY and contributed to the selling bias.
Souring market sentiment saw a rally in US bonds, pushing US 10-year yields to break below the key 1.30% level.
Price action has slipped below 21-EMA and is currently testing support at 55-EMA at 109.76.
Momentum studies are strongly bearish. MACD shows bearish crossover on signal line. The pair has broken major trendline support.
Major Support Levels:
S1: 109.51 (23.6% Fib)
S2: 109.22 (cloud base)
S3: 108.89 (200-week MA)
Major Resistance Levels:
R1: 110.43 (21-EMA)
R2: 110.60 (5-DMA)
R3: 110.85 (200H MA)
Summary: USD/JPY bears eye 23.6% Fib at 109.51. Cloud offers strong support, breach below will open downside.


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