• USD/JPY declined on Wednesday as anticipated slowdown of the US economy drove safe-haven flows towards the yen.
• Soft U.S. manufacturing data released on Tuesday intensified fears of a hard landing for the world's largest economy, adding to traders' unease as they await the crucial monthly payroll numbers set for release on Friday.
• A close below support at 38.2%fib will give further momentum to bears, opening the way for a run towards 143.50 level.
• Technical signals are bearish as RSI is heading down at 37, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 145.32 (50%fib), any close above will push the pair towards 146.00 (Psychological level).
• Support is seen at 144.08 (38.2%fib) and break below could take the pair towards 142.16 (23.6%fib)
Recommendation: Good to sell around 144.30, with stop loss of 145.00 and target price of 143.50
