FxWirePro: USD/JPY fails at 55-EMA, slips below 5-DMA, bias lower

• USD/JPY fails to hold above 55-EMA, breaks below 5-DMA support at 107.10.
   
• The major is extending downside for 2nd straight session and intraday bias is bearish.
   
• Technical indicators are turning bearish. RSI is biased lower and Stochs are on verge of rollover from overbought levels.
   
• We evidence a 'Gravestone Doji' formation at highs which adds bearish pressure.
   
• Next major support on the downside lies at 20-DMA at 106.46. Violation there will see further weakness.
   
• On the upside, immediate resistance lies at 107.37 (55-EMA). Break above could see test of 100-DMA at 109.19.
   
• Focus remains on Abe's and Trump's meeting on Tuesday along with U.S. Industrial Production data.

Support levels - 106.61 (Apr 10 low), 106.46 (20-DMA), 106

Resistance levels - 107.10 (5-DMA), 107.37 (55-EMA), 107.78 (Apr 13 high)

Recommendation: Stay short on close below 5-DMA, target 106.46

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -150.42 (Bearish), while Hourly JPY Spot Index was at -34.3046 (Neutral) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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