FxWirePro: CHFJPY upside capped by 200-4H MA, good to buy on dips (please ignore the previous report)
FxWirePro: USD/JPY recovery capped at 21-EMA, renewed risk aversion limits upside
USD/JPY chart - Trading View
USD/JPY has slipped lower from session highs at 108.07 and is currently trading at 107.94 at 04:15 GMT.
Uncertainty over the trade deal with China and renewed risk aversion amid escalating tensions between UK and Iran keep upside limited.
Reuters reported that China will levy fresh anti-dumping duties on stainless steel imports from the European Union, Indonesia, Japan and South Korea.
Technical outlook is bearish and comment’s from Fed’s officials reinforcing rate cut expectations further weigh.
Upside look limited. Stiff resistance seen at 108.08 (converged 200H SMA and 21-EMA). Break above could see gains till 50-DMA at 108.52.
Major trend is bearish. Resumption of weakness will see dip till 78.6% Fib at 106.31. Bearish invalidation only above 200-DMA (110.65).
Focus on Bank of Japan (BOJ) Governor Haruhiko Kuroda’s speech to take clues on monetary policy.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.