USD/JPY (a 4-hour chart)
On Tuesday, the Japanese yen stopped falling. The yen came down to 7% against the U.S. dollar. Last week, the Bank of Japan showed a large-scale program which provides economic stimulation. Investors are actively selling the Japanese yen, after reading the leniency program of monetary policy.
Yen is above the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is directed upward, the cloud is growing.
Bollinger midline is directed upward. The indicator lines are narrowing. A correction or a return to a downward movement is possible.
MACD histogram started to reduce its volume, the signal line left the indicator body. Everything confirms a correction.
After the meeting of the Bank of Japan yen predictably began to grow, reaching almost 100 yen per dollar. However, investors have little confidence in the long-term growth without a good economic support.
100 is major psychological level and the couple is not the strength to overcome it at the moment.
We expect the pair to fall to the levels 98.00 - 99.60.