02, November 2016

USD/JPY (a 4-hour chart)

General overview

As expected the Bank of Japan left its monetary policy on hold. Besides, the regulator cut its inflation forecasts. The published news slightly impacted the pair.

Current situation

 The upward momentum seems to have run out of steam. The USD/JPY gave up its recent highs, trading around the 105.00 major level during the European hours. Sellers seem to be guarding 105.00 as the price bounces from the level on every attempt to the upside. The moving averages are turning lower in the 1-hour chart. The price broke all moving averages and moved lower in the same chart. The resistance can be found at 104.50, the support comes in at 104.00.

MACD is in the positive area. MACD decreased which indicates the buyers’ positions weakening. RSI is within the oversold area.

Trading recommendations

A break below 104.50 suggests further weakness of the USD/JPY pair. Sellers may lead the price to the 104.50 handle where USD/JPY may bounce off.