USD/JPY chart - Trading View
USD/JPY extends weakness in the early Asian session, trades 0.19% lower at 107.09 at 03:45 GMT.
The major largely unaffected after Japan's May CPI data. Headline inflation 0.7% y/y, in line with expectations, down from 0.9% prior.
Technical indicators are highly bearish. Volatility is rising, scope for further downside.
The pair has hit new 5-month lows and is on track to test 78.6% Fib retracement at 106.31.
BoJ retained the short-term interest rate target at -0.1% as widely expected with no surprises in the statement.
Price action is consolidating at 107 handle. Break below will accelerate downside.
Support levels - 107, 106.31 (78.6% Fib), 106, 105.53 (88.6% Fib)
Resistance levels - 107.61 (61.8% Fib), 107.89 (5-DMA), 108.52 (50% Fib)
Call Update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-extends-weakness-post-BoJ-falling-Treasury-yields-and-an-overtly-dovish-Fed-keep-downside-pressure-1552021) has hit all targets.
Recommendation: Watch out for break below 107 handle for further weakness.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
