FxWirePro: USD/JPY hits new 3-week lows at 112.61, US-China trade woes dent sentiment

USD/JPY chart on Trading View used for analysis

• USD/JPY hovers near fresh 3-week lows at 112.61, as US-China trade woes increased safe-haven bids for the Japanese yen.
   
• Markets largely ignore positive Japan trade readings. Japan's annualized Exports and Imports both improved for October.
   
• Japan exports came in at 8.2% (previous -1.3%), while imports stood at 19.9% versus the previous period's 7% showing.
   
• The major looks set for more declines as technical indicators on daily charts have turned bearish.
   
• Price action has slipped below 50-DMA and is currently holding support at 55-EMA at 112.64.
   
• Break below 55-EMA will see weakness till 110-EMA at 111.92 ahead of major trendline support at 111.70.
   
• Focus now on the BoJ's Monetary Policy Statement, due early Tuesday, for cues of increasing divergence within the Japanese central bank's leading ranks.

Support levels - 112.64 (55-EMA), 112.20 (23.6% Fib), 111.92 (110-EMA)

Resistance levels - 112.84 (50-DMA), 113.08 (20-DMA), 113.31 (5-DMA)

Recommendation: Good to go short on upticks around 112.75/80, SL: 113.15, TP: 112.20/ 111.95/ 111.70

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.