FxWirePro: USD/JPY retreats from new monthly highs at 109.99, weakening risk-appetite to keep pair subdued

USD/JPY chart on Trading View used for analysis

• USD/JPY failed to preserve its momentum overnight, slips lower from new 2019 highs at 109.99.
   
• Sentiment soured as the government shutdown in the U.S. showed no signs of ending anytime soon.
   
• 10-year T-bond yield also lost its traction to confirm the weakening risk-appetite, weighing on the pair.
   
• 110 remains a tough barrier to cross. Technical studies are biased neutral. Decisive break above 110 could see upside.
   
• Data from the U.S. overnight showed that house prices rose 0.4% in November and the Richmond Fed Manufacturing Index improved to -2 in January from -8.
   
• 110 mark is strong resistnace, break above finds next major hurdle at 110.77 (61.8% Fib).
   
• On the downside, 20-DMA is immediate support at 109.07. Break below finds little support till jan 10th lows at 107.77.

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