- USD/JPY broke below the 111 handle and hit fresh 3-week lows at 110.78 before paring some losses to currently trade at 110.96 levels.
- Upbeat Japan Labour cash earnings data along with renewed risk-off supporting the Japanese Yen higher.
- BOJ Governor Kuroda was on the wires, speaking in parliament, noting that they are watching forex moves carefully.
- He said that monetary policy doesn't directly target forex, adding that it is desirable for forex to move in way reflecting fundamentals.
- The major sees strong trendline support at 110.77 and is holding above that level. Breaks below would see test of 110.55 and then 110 levels.
- On the upside, resistance is seen at 111.77 (5-DMA) ahead of 111.80 (Apr 4th highs).
- Techincal indicators are heavily bearish, strongly supporting downside in the pair.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-on-track-to-test-support-at-11050-momentum-heavily-bearish-188523) has hit target 1 @ 110.82.
We recommend booking partial profits, lowering stop to 111.80, target 110.50/110
