• The pair’s overnight slump, triggered by more than previously anticipated dovish FOMC, confirmed a decisive break through a 2-1/2-month-old ascending trend-channel.
• The bearish trajectory extended through the Asian/early European session on Thursday and dragged the pair to its lowest level since late-February, or over three-week lows.
• Given that daily technical indicators have just started gaining negative momentum, the set-up now supports prospects for an extension of the near-term bearish trajectory.
• The downward momentum seems more likely to get extended towards the key 110.00 psychological mark before the pair eventually drops to test the 109.60 horizontal support.
USD/JPY daily chart