FxWirePro: USD/JPY hits fresh 18-month lows, on track to test 105.50

• USD/JPY continues downtrend after brief pause on Monday, hits fresh 18-month lows at 106.04.
   
• Broad US dollar weakness across the board in light of a recovery in commodities also weighing on the pair.
   
• Sluggish manufacturing activity reports from China released over the weekend weighed negatively on the markets. 
   
• With Japan’s markets closed for rest of the week, focus remains on the US docket. Key US employment data later this week, along with US ISM manufacturing PMI report. 
   
• Technically upside in the pair lack momentum. RSI weak at 31. Major moving averages biased lower. 
   
• Pair finds support by trendline at 106 levels, breaks below will drag the pair to 105.50 levels. 
   
• Immediate support and resistance are located at 105.50 (Oct 16th 2014 low) and 106.81 (May 2nd highs) respectively. 
   
• Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-recovers-slightly-from-fresh-18-month-lows-at-10613-good-to-sell-rallies-202794) has hit TP1 and is approaching TP2.
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Recommendation: Book partial profits, lower stops to 106.85, hold for 105.50