FxWirePro: USD/JPY hits 9-month low at 103.05, set to extend sell-off after breach at strong trendline support

USD/JPY chart - Trading View 

USD/JPY was trading 0.32% lower on the day at 103.10 at around 10:30 GMT, outlook bearish.

US dollar index was hovering at 32-month lows and USD/JPY is set to extend sell-off as price action breaks major trendline support at 103.45.

Focus now on U.S. weekly jobless claims. Analysts expect jobless claims to drop after jumping last week. US Unemployment Claims are projected to decline from the highs of 853,000 recorded last week.

Continuing Claims are expected to decrease to 5.598 million in the week of December 4 from 5.757 million in the prior.

Also, a dovish Fed, exerted additional pressure on the greenback. At the final meeting of the year, the Fed showed a willingness to do more if needed.

The US central bank also promised to keep interest rates near zero for years to come and said that it will continue to support the economy through massive monetary stimulus. 

Technical analysis supports weakness. GMMA shows major and minor trend are strongly bearish. 

Price action extends downside in Sloping Channel pattern and has broken strong trendline support at 103.45, opening downside.

Momentum is strongly bearish, volatility is rising and ADX supports downside. Scope for dip till 101.75.