USD/JPY chart - Trading View
- USD/JPY trades below 110 handle for the first time March 28, bias bearish.
- Re-escalation of trade war fears and the resulting flight to safety supporting the Japanese yen.
- The pair has broken major supports - 110.80 (trendline) and 110.31 (cloud base) opening up further downside.
- Price action has slipped below major EMAs and technical indicators are highly bearish.
- Volatility rising on the daily charts and momentum with the bears. MACD and DMI support downside.
- Break below daily cloud has raised scope for weakness till 109.44 (38.2% Fib). Bearish invalidation above 200-DMA.
Support levels - 109.44 (38.2% Fib), 109, 108.52 (converged 50% Fib and Jan 31st low)
Resistance levels - 110.31 (cloud base), 110.69 (5-DMA), 111
Recommendation: Good to stay short on upticks, SL: 110.70, TP: 109.45/ 109
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
