FxWirePro: USD/JPY under heavy selling pressure, dives over 0.75% to hit 2-week low

USD/JPY chart - Trading View 

USD/JPY was trading 0.73% lower on the day at 109.79 at around 08:00 GMT, slightly above session lows at 109.76.

The pair came under some heavy selling pressure on Thursday, dived over 0.75% to hit 2-week lows.

COVID-19 jitters amid rising cases of the Delta variant and the resulting risk-off mood benefitted the safe-haven JPY and contributed to the selling bias.

Souring market sentiment saw a rally in US bonds, pushing US 10-year yields to break below the key 1.30% level.

Price action has slipped below 21-EMA and is currently testing support at 55-EMA at 109.76.

Momentum studies are strongly bearish. MACD shows bearish crossover on signal line. The pair has broken major trendline support.

Major Support Levels: 

S1: 109.51 (23.6% Fib)

S2: 109.22 (cloud base)

S3: 108.89 (200-week MA)

Major Resistance Levels: 

R1: 110.43 (21-EMA)

R2: 110.60 (5-DMA)

R3: 110.85 (200H MA)

Summary: USD/JPY bears eye 23.6% Fib at 109.51. Cloud offers strong support, breach below will open downside.