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FxWirePro: USD/JPY retraces below 5-DMA, China's retaliation plan strengthens bid tone around JPY

USD/JPY chart - Trading View 

USD/JPY slumps in the Asian session to hit 2-week lows at 109.12.

The pair dives as China's retaliation plan strengthens bid tone around JPY.

China said that it is ready with a plan to limit rare earth exports to the US if needed.

Technical studies have always been bearish as noted in our previous article.

Upside has been capped below 21-EMA and technical charts are biased lower.

A 'Dravestone Doji' formation on daily charts seen on Thursday's candle.

Scope for test of trendline support at 108.75. Break below will see further weakness.

Support levels - 108.75 (Falling Trendline), 108, 107.61 (61.8% Fib)

Resistance levels - 109.45 (5-DMA), 109.96 (21-EMA), 110

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

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