$USDJPY Morning Commentary

USDJPY closed lower on Wednesday as it extends the decline off September's high. The mid-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are diverging but are neutral to bearish signaling that additional weakness is possible near-term. If March extends the decline off September's high, monthly support crossing at .11697 is the next downside target. Closes above the 20-day moving average crossing at .12102 are needed to confirm that a short-term top has been posted. 

First resistance is the 10-day moving average crossing at .12027. 

Second resistance is the 20-day moving average crossing at .12102. 

First support is today's low crossing at .11827. 

Second support is monthly support crossing at .11697.