FxWirePro: USD/JPY extends downside, prints fresh monthly lows at 110.45, weakness in Treasury yields weighs

USD/JPY chart - Trading View 

• USD/JPY is extending previous session's weakness, hits fresh monthly lows at 110.45.
   
• The pair is trading 0.19% lower on the day at 110.47 at 0400 GMT, bias bearish.
   
• The Fed kept interest rate unchanged as expected, signaled no rate hikes for the rest of the year and downgraded growth forecasts. 
   
• The Fed announced the balance sheet reduction program will end in September. Many did not expect the Fed’s balance sheet run down to end in September. 
   
• The US 10 year yield dropped sharply to 2.52% from 2.59%, having traded as high as 2.61% pre-Fed. Weakness in Treasury yields continue to weigh.
   
• Technical indicators on the daily charts have turned bearish. The pair has broken below rising channel and has slipped below 61.8% Fib.
   
• Immediate support lies at Lower Bollinger band at 110.42 and then 110.30 (trendline). Break below will see dip till 109.60.
   
• Focus on U.S. Jobless Claims data for further impetus.

Support levels - 110.42 (Lower BB), 110.30 (trendline), 109.60 (50% Fib)

Resistance levels - 110.77 (61.8% Fib), 110.87 (55-EMA), 111.07 (converged 5-DMA and 21-EMA)

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