FxWirePro: USD/JPY bounces off trendline support, but unable to hold gains above the 118 handle

USD/JPY bounce overnight from trendline support failed near 118 handle and the major dropped to new session lows towards the mid-point of 117 handle.

• Yen back in demand amid falling Japanese stocks, Asian stocks have been volatile triggering risk-off trades.
   
• Strong support for the pair lies at 116.65 (trendline) and further below at 116 levels, while on the upside resistance is seen at 118.02 (Jan 11 & session highs) ahead of 118.75 (Jan 7 highs).
   
• Price action is well below the cloud and moving averages biased lower. RSI and Stochs on dailies are deeply in oversold territories.
   
• The data calendar is rather empty today, nothing of note for the JPY in terms of macro news except for the BOJ Governor Kuroda's speech.
   

Recommendation: We will wait for further technical confirmation to initiate any trade