USD/JPY (a 4-hour chart)
USD/JPY fell earlier in the week, losing more than 200 points. The price reached the resistance level 95.85 and rebounding from this level started a corrective upward movement. The growth of the yen has been caused by several factors.
The effect of easing monetary policy is reduced. On the other hand, the governor of the Bank of Japan, Mr. Kuroda Haruhito said in his statement on Monday that the government had taken adequate measures to support the economy and to achieve the inflation level of 2%.
He also made it clear that other measures to stimulate the economy are not planned in the near future.
On Monday, the Bank of Japan raised its assessment of the economy in all regions of the country, noting that the level of corporate expenditures as well as domestic demand increased in the regions.
The pair is above the Kijun-Sen and Tenkan-Sen, Kijun-Sen line is pointing down, the Cloud stopped growing and began to descend.
Bollinger bands show the divergence lines, confirming the price falling.
The MACD histogram is oversold and can form a signal to buy in the future.
The pair is correcting upward near the resistance level 98.00. It is possible that in the near future it will continue the upward movement to the level 98.45, after reaching this level, the price may resume its movement down to the level 97.20, 96.60 and possibly 95.80. In this situation, it is advisable to open the short-term warrants to purchase if the price breaks the level 98.00.