FxWirePro: USD/JPY slips below 109 handle as Japan looks set to extend and expand the state of emergency
FxWirePro: USD/JPY slips below 108 handle to hit fresh 7-week lows, downward bias intact
USD/JPY chart - Trading View
USD/JPY slipped below 108 handle to hit fresh 7-week lows at 107.97, downward bias intact.
The major was trading largely unchanged at 108.12 at around 04:20 GMT, with session high at 108.31 and low at 107.97.
Diminishing odds for an earlier than anticipated Fed lift-off undermined the buck, dragging the pair lower.
Further, slight deterioration in the global risk sentiment provided a modest lift to the safe-haven Japanese yen.
USD/JPY slips lower for the 3rd straight week, trades below 200W MA with scope for further downside.
Major Support Levels:
S1: 107.95 (55-EMA)
S2: 107.52 (Cloud top)
S3: 107.40 (110W EMA)
Major Resistance Levels:
R1: 108.55 (5-DMA)
R2: 108.94 (200W MA)
R3: 109.46 (20-DMA)
Summary: USD/JPY trades with a bearish technical bias. Watch out for break below 55-EMA support for further downside. Scope for test of cloud support at 107.52.