USD/JPY finds strong support at 109.40, short break below

USD/JPY trades 0.44% lower on the day, breaks below 110 handle, bias lower.
Price action is below daily cloud and major moving averages.
We see major support at 109.40 (channel base). Break below required for further weakness.
Rising US - North Korea tensions keeping the safe haven Japanese yen in demand.
Momentum studies on weekly charts are bearish. RSI below 50 and biased lower.
Break below 109.40 could accentuate weakness. Scope then for test of 107.40 levels.

Support levels - 109.40 (channel base), 109, 108.80 (June 14 low), 108.13 (Apr 17 low)
Resistance levels - 110, 110.13 (5-DMA), 111.23 (20-DMA)

Watch out for break below channel base at 109.40 to go short, target 108.80/ 108.20

Kommentera:

USD/JPY pulled back from 2-month lows at 109.55, but 5-DMA at 110.33 weighs on the upside, intraday bias bearish.
Focus on the release of US PPI print and weekly jobless claims for further direction.