FxWirePro: USD/JPY hits 4-month lows at 110.62, on track to test 110 mark, focus on BoJ

• USD/JPY hits 4-month lows at 110.62 on dollar weakness, bears now target 110 levels.
   
• US dollar is on the back foot, focus now on BoJ's January 23rd meeting for further direction.
   
• Technically, the pair is consolidating break below 200-DMA, is extending downside in a downward slopping channel.
   
• Indicators on daily charts support more downside, the pair has broken major supports.
   
• The pair has breached 200W SMA support at 112.48 and price action has dipped into weekly cloud.
   
• We see next major support at 110.15 (61.8% Fib) ahead of 110 (channel base).
   
• Violation at channel base could see more downside. On the flipside, retrace above 200-DMA could invalidate bearish bias.

Support levels - 110.15 (61.8% Fib retrace of 107.318 to 114.737 rally), 110 (channel base), 109.10 (weekly cloud base)

Resistance levels - 111, 111.39 (5-DMA), 111.69 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-slumps-below-200W-SMA-at-11248-eyes-618-Fib-at-11015-1092277) has hit TP1/2.

Recommendation: Book partial profits, hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -147.751 (Bearish), while Hourly JPY Spot Index was at -15.0207 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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