USD / JPY pair is still moving generally with a side orientation on the background of new drivers luck in the market for the formation of a trend movement.
Globally, the demand for US currency remains low and USD dollar is somewhat weak, after changing the Fed’s plans to implement a program to normalize interest rates. On the other hand, the Japanese yen also lost local support from equities slode. Yesterday, China announced the implementation of new measures to stimulate the economy, which should minimize losses from US duties. This news supported equities around the globe, which yesterday closed mainly in positive territory. Major European indices are still traded in different directions.
Amid global uncertainty and economy slowdown risks as well as the lack of strong drivers, we should probably expect further development of sideway dynamics in USD / JPY.
We can make the same conclusion by analyzing the hourly chart. In the middle of European session, markets traded limits might be designated by levels 107.80-109.00, and since the price is now near the upper end of the specified channel, the priority is the scenario with USD/JPY decline. We can expect a serious change in sentiment in the market only after the price fixing above 109.00, which will open up new opportunities for growth in the direction of 109.50.