USD/JPY (a 4-hour chart)
The yen slightly strengthened after the Japanese regulator’s statements. The BoJ will preserve the quantitative and qualitative easing programs together with the negative rates till they reach the targeted inflation of 2%.
The yen traded sideways yesterday. The pair was in a narrow sideways channel between 101.20 and 100.60. The instrument seems not to have enough power to break the strong level 100.00 as bulls defend this psychological mark. The technical outlook is negative for the pair. The resistance stands at 101.40, the support is seen at 100.00.
The price is below the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages are moving downwards. The USD/JPY traded below the 50-EMA in the 1 hours chart which acts as a resistance for the instrument.
MACD remained negative, its histogram remained at the same levels. RSI remained at the same level as well. Its signal line is close to the oversold area.
In the event that the sellers manage to force below 100.00 the decrease will be continued to 99.00. The USD/JPY may recover to 102.50.