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FXstreet.com (San Francisco) - USD/JPY is selling off in early Asian trade Tuesday, underpinned by a jolt of yen strength across the board. Spot has broken below the 87.60 support zone to test bids through a two-day low of 87.33, stalling at the 50-hr EMA. What is the catalyst? As Sean Lee, founder of FXWW explains in a research note, the dip comes on yesterday's comments.

Technically speaking, "Moving averages below current price continue heading higher, another technical factor that limits the downside," explains Valeria Bednarik, Chief Analyst at FXstreet.com. "Key support for current session is located at 87.30/40 area, where the pair presents several intraday highs from last week: a break below should trigger some profit taking, with 86.80 then at sight."

USD/JPY last trades at 87.45 vs. 87.78 at the closing bell in NY, with further support levels noted at 87.00. Ms. Bednairk identifies resistance levels at 88.10, 88.40 and 88.70.

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