• USD/JPY largely rangebound on the day (day's range 109.32-108.88), slips below 109 handle.
   
• Sentiment on the Asian markets remain mixed this Wednesday, with the Chinese stocks extending losses, while rest of Asia gains further.
   
• USD weak across the board after poor housing data overnight. US housing starts fell 8.8% in March following an upwardly revised 6.9% gain in February.
   
• Renewed weakness in the oil prices keeps the yen supported, while poor Japanese trade data weighs on the sentiment.
   
• The BOJ is very likely to downgrade its inflation forecast next week and the likelihood of a BOJ easing remains high. Expectations of a BOJ easing will support USD/JPY.
   
• Technicals on intraday charts point further downside. Momentum studies are bearish. 
   
• Our call (http://www.econotimes.com/FxWirePro-USD-JPY-finds-strong-resistance-at-10945-good-to-sell-rallies-196991) is progressing. Hold for targets.
   
• Bearish invalidation on breaks above falling trendline resistance at 109.35.