USDJPY is trading weak after showing a recovery till 109.28 and shown a decline of more than 100 pips on broad-based US dollar selling. The pair has formed almost a double top around 109.30 and is currently trading around 108.25.
BOJ has kept its rates unchanged and tweaks forward guidance. The central bank hinted it is willing to cut rates to achieve a 2% inflation target. Markets eye US PCE index and Chicago PMI for further direction.
Technically, the near term major support is around 108 and any violation below will drag the pair down till 107.70/107.37.
On the higher side, major resistance stands at 109.30 and a decline from 112.40 will end at 104.40 only if pair breaks 109.30.
It is good to sell on rallies around 108.65-70 with SL around 109.30 for the TP of 107.40.
