USD/JPY (a 4-hour chart)
The yen weakened on Wednesday following the speculations on further BoJ easing its monetary policy.
The dollar grew to a six-day high against the yen. The price almost reached 103.50 when it reversed and decreased to 102.50. The price is above its moving averages, with the 50, 100 and 200 EMAs providing a strong dynamic support in the 102.00 region. The moving averages are neutral in the 4 hours chart. The resistance is at 103.50, the support comes in at 102.50.
MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is within positive territory.
A break above 103.50 would open the way to 104.50. Once we break below the 102.50 level, we think that the 101.40 level will be next.