FxWirePro: USD/JPY pares previous session's gains, slips lower to test 200-DMA

USD/JPY chart on Trading View used for analysis

• USD/JPY slips lower, erases previous session's gains, intraday bias bearish.
   
• Dollar failed to capitalize on a eight-day high hit in the previous session on the back of firmer U.S. Treasury yields.
   
• Assurances from the White House regarding Treasury Secretary Steven Mnuchin’s and Federal Reserve Chairman Jerome Powell’s job boosted market sentiment.
   
• USD/JPY slips below 200-DMA, scope for further weakness on close below.
   
• Next major support lies at 50% Fib at 109.59. On the flipside, 21-EMA at 112.28 is strong resistance.

Support levels - 110.76 (38.2% Fib), 110, 109.59 (50% Fib)

Resistance levels - 111 (5-DMA), 112.28 (21-EMA)

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