• USD/JPY hit eight month low on Friday as hawkish comments from BOJ board members and weaker dollar benefited yen.
• Bank of Japan board member Junko Nakagawa emphasized on Wednesday that the central bank will raise interest rates if economic conditions and inflation match its forecasts.
• On Thursday, BOJ board member Naoki Tamura stated that the central bank should raise rates to at least 1% by the second half of the next fiscal year.
• At GMT 06:26, the pair was trading down 0.58% at 140.97, lowest since January 2nd .
• Technical signals are strongly bearish as RSI is at 30, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 141.93(Daily high), any close above will push the pair towards 142.46 (38.2%fib).
• Support is seen at 140.74(23.6%fib) and break below could take the pair towards 140.09 (Lower BB)
Recommendation: Good to sell around 141.10, with stop loss of 142.70 and target price of 140.10
