- USD/JPY has been sold off heavily overnight on a broad based run on the greenback after Yellen's speech.
- The pair broke strong trendline support at 112.95 and has edged lower to hit session lows at 112.40 on the day.
- 112.40 is 10-DMA and strong support on the downside, breaks below could see test of 112.20 and then 112 levels.
- Expectations on the rise for the Bank of Japan to decide on a significant monetary easing at its April 2016 meeting.
- The pair finds immediate support at 112.40 (session lows and 10-DMA), while resistance on the upside is seen at 112.90 (5-DMA).
Recommendation: Good to sell rallies around 112.60, SL: 113, TP: 112.20/112/111.65
