Japanese yen strengthened today after Japan government decided to postpone the tax raise. Japan government also said that they will launch stimulus package at this fall. The counselor of the prime minister recommended fiscal stimulus package up to 10 trillion yen worth. 

Latest economic indicators also supported yen’s strengthening. The country’s capital expenditure rose 4.2% in the first quarter compared to the previous year, much better than economists’ expectation at 1.9%. This figures has the potential to change the final GDP estimation which will be published next week. 

USD/JPY is really under heavy pressure today. A bounce has occurred from today’s low at 109.043, which becomes intraday key support. Intraday bias is bearish especially if the price managed to break the key support with 108.418 as target and 107.894 in extension. 
We can see bullish signals from hourly stochastic and CCI, so there could be a pull-back move to within the Fibonacci resistance area at 109.921-110.463. In that case, try to look for bearish signal confirmation as signal to go short with target at 109.585 and 109.043 in extension. 
Be careful if the price managed to break resistance 110.463 because it will turn the intraday bias to bullish and possibly will be followed by bullish move up to 110.849-111.341. 

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