FxWirePro: USD/JPY slumps sharply to hit fresh weekly lows near 104.27, bias lower

• Japanese economy minister Ishihara is now crossing the wires via Reuters, noting that, “Growth will not improve unless structural reform is implemented; important to take steps on fiscal reform.”
   
• Japan Govt is considering 6 tln yen of new spending, of which only about 2 tln will be coming in the supplementary budget. Markets had expected stimulus package to the tune of 20 to 30 tln yen.
   
• Yen spikes taking USD/JPY to fresh weekly lows near 104.27 region, has currently recovered some losses to trade at 104.43 levels.
   
• Next major support aligns at 103.92(20-DMA) ,break below will see drag upto 103.54 (June 16 low).
   
• Break above 106.50 (channel top) would invalidate bearish bias, scope then for test of 111.45 (May 30 high).
   
• Techs are bearishly aligned, Stochs show rollover from overbought levels, RSI biased lower.
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Recommendation: Good to sell rallies around 104.50/60, SL: 105, TP: 104/ 103.60