USD/JPY chart - Trading View
USD/JPY slumps below 108 handle to hit new 5-month lows at 107.55, bias bearish.
The Bank of Japan retained the short-term interest rate target at -0.1% as widely expected.
The the monetary policy statement offered little hawkish/dovish surprises, while maintaining the 10-year JGB yield target around 0%.
USD/JPY remains on the defensive amid falling UST yields and an overtly dovish Fed outcome.
Technical indicators have turned bearish. Volatility is rising, scope for further downside.
Price action has tested 61.8% Fib retracement. Next major bear target lies at 107.31 (Sept 2017 low) ahead of 78.6% Fib at 106.31.
Support levels - 107.31 (Sept 2017 low), 107, 106.31 (78.6% Fib)
Resistance levels - 108, 108.25 (5-DMA), 108.52 (50% Fib)
Recommendation: Good to stay short on upticks, SL: 108.30, TP: 107.31/ 107
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
