• USD/JPY hit eight month low on Wednesday as hawkish comments from Bank of Japan monetary policy board member Nakagawa boosted yen across the board.
• Bank of Japan board member Junko Nakagawa, in a speech on Wednesday, reaffirmed that the central bank would continue to raise interest rates if the economy and inflation align with its forecasts.
• At GMT 04:06, the pair was trading down 0.74% at 141.35, lowest since January 2nd .
• Technical signals are bearish as RSI is heading down at 31, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 142.86(Daily high), any close above will push the pair towards 144.16 (38.2%fib).
• Support is seen at 141.04 (23.6%fib) and break below could take the pair towards 140.32 (Lower BB)
Recommendation: Good to sell around 141.40, with stop loss of 142.00 and target price of 140.50
