FxWirePro: USD/JPY slips below 1H 200-SMA, sell-off in US Treasury yields drags

USD/JPY chart on Trading View used for analysis

• USD/JPY is seeing sharp downside from highs of 113.66 hit earlier today.
   
• The major is currently trading 0.29% lower on the day at 113.31 at the time of writing.
   
• US-China trade truce boosts the demand for the riskier currencies, sending the Dollar lower.
   
• Price action has dipped below 1H 200 SMA and we see a turn in the 5 day moving average.
   
• Price action is currently holding support at 21-EMA and break below will see further weakness.
   
• Next major support lies at 112.55 (cloud top). Breach at daily cloud will see weakness till trendline support at 112.30.
   
• On the flipside, we see major resistance at 114 (trendline). Break above will see further upside.

Recommendation: Stay short below 21-EMA, target 112.55/ 112.30

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