FxWirePro: USD/JPY Slips Below 109 Handle, Broad Based USD Weakness Weighs
- USD/JPY largely rangebound on the day (day's range 109.32-108.88), slips below 109 handle.
- Sentiment on the Asian markets remain mixed this Wednesday, with the Chinese stocks extending losses, while rest of Asia gains further.
- USD weak across the board after poor housing data overnight. US housing starts fell 8.8% in March following an upwardly revised 6.9% gain in February.
- Renewed weakness in the oil prices keeps the yen supported, while poor Japanese trade data weighs on the sentiment.
- The BOJ is very likely to downgrade its inflation forecast next week and the likelihood of a BOJ easing remains high. Expectations of a BOJ easing will support USD/JPY.
- Technicals on intraday charts point further downside. Momentum studies are bearish.
- Our call (http://www.econotimes.com/FxWirePro-USD-JPY-finds-strong-resistance-at-10945-good-to-sell-rallies-196991) is progressing. Hold for targets.
- Bearish invalidation on breaks above falling trendline resistance at 109.35.