FxWirePro: USD/JPY hovers around major trendline support at 105.40, focus on BoJ for further direction

• USD/JPY price action has been rejected at session highs at 105.67, the pair is currently down 0.26% at 105.43.
   
• Price action has hit 15-month lows of 105.25 in the previous week's trade, bias still lower on weekly charts.
   
• The pair is extending downside from yesterday after Trump's tariff headlines send markets in a tailspin.
   
• Given the international uproar along with the market fall out, the President may consider dialling back on some of the rhetoric.
   
• Technical studies are heavily bearish. RSI and Stochs are biased lower. -ve DMI is dominant and rising.
   
• The major is extending downward spiral since highs of 114.737 in Nov 2017, next bear target on violation at lies at 105.40 (major trendline support) could be 78.6% Fib at 103.04.
   
• Focus shall be on BoJ this week for further direction. Expectations are that the Bank of Japan will maintain its current monetary policy.
   
• Markets will pay keen attention to the Governor's presser on questions regarding strong yen against dollar. 

Support levels - 105.40 (trendline), 105, 104, 103.04 (78.6% Fib retrace of 98.787 to 118.662 rally)

Resistance levels - 106, 106.27 (5-DMA), 106.38 (61.8% Fib), 107

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