FxWirePro: USD/JPY Slips Below 109 Handle, Broad Based USD Weakness Weighs

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. 
  

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