FxWirePro: USD/JPY slips below 109 handle on dovish Fed, bears target 61.8% Fib at 108.41

USD/JPY chart on Trading View used for analysis

• USD/JPY is trading weaker after a dovish Fed overnight, slips below 109 handle.
   
• The major is trading 0.15% lower on the day at 108.87 at 0400 GMT, bias bearish.
   
• Technical studies are bias lower, RSI and Stochs are biased lower and MACD is on verge of a bearish crossover on signal line.
   
• Price has broken 20-DMA which was strong support on the downside, raising scope for further weakness.
   
• Bears now on track to test of 61.8% Fib at 108.41. Further weakness can see downside till 78.6% Fib at 106.75.
   
• On the data front today, we have US PCE price index and jobless claims data for further impetus.
   
• Bearish invalidation only above 21-EMA at 109.47. 

Support levels - 108.41 (61.8% Fib), 108.02 (Lower BB), 107.77 (Jan 10 low)

Resistance levels - 109.02 (20-DMA), 109.22 (5-DMA), 109.47 (21-EMA)

Recommendation: Stay short on upticks, SL: 109.50, TP: 108.45/ 108

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.