USD/JPY (a 4-hour chart)
The yen strengthened when the BoJ increased its purchases of ETFs (exchange-traded funds). However, the BoJ’s statements disappointed investors who expected bolder measures from the regulator.
The yen took control of the flows. The pair decreased and set the lowest level since July 11th. The resistance is at 103.50, the support comes in at 102.50.
The indicators MACD and RSI still generate sell signal. MACD decreased which indicates the sellers’ strength. RSI entered the oversold area.
The instrument broke the 50, 100 and 200 Day EMAs downwards in the 4 hours chart. The moving averages lines are turning downwards.
All eyes are right now at the support level 101.40. Should the instrument break the level and the downward movement will be extended.