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FxWirePro: USD/JPY struggles at 20-DMA resistance, broad-based U.S. dollar weakness amid looming political risks weighs

USD/JPY chart - Trading View

USD/JPY was trading 0.23% lower at 105.30 at around 04:50 GMT, ending a 5-day winning streak.

The pair is currently testing support at 5-DMA at 105.30 after upside was capped at 20-DMA resistance.

The greenback is losing ground across the board amid looming US political risks. Focus now shall be on the election debate this week for further impetus. 

Major trend in the pair is bearish and price action is below cloud and major moving averages. 

Decisive close below 5-DMA could see downside resumption. Dip till 104 then likely. 

On the flipside, volatility is high. Decisive breakout at 20-DMA will reinforce bullish bias. Test of 23.6% Fib at 105.96 then likely.

Bullish potential however remains limited as Japanese Chief Cabinet Secretary Kato in a daily briefing on Monday said that government will not hesitate to deploy additional economic measures if needed.

Support levels - 105.30 (5-DMA), 104.45 (Lower BB), 104

Resistance levels - 105.58 (20-DMA), 105.97 (converged 23.6% Fib and 55-EMA), 106

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