USD/JPY (a 4-hour chart)
The dollar traded lower against the other major currencies following the weak Empire State manufacturing report which diminished expectations for another rate hike by Fed in 2016.
The 3-week bullish trend remains intact. The price strengthened in the Asian session on Tuesday. However, the growth was stopped by the 104.00 level, where the pair met a selling interest, pushing the price lower. The USD/JPY pair bounced off the level and headed downwards to the 103.40 region where the 50-EMA lies. The 50-EMA may provide a solid support for the quotes in the 4 hours chart. The moving averages maintained their bullish slope in the same timeframe. The resistance can be found at 104.00, the support comes in at 103.00.
MACD decreased which indicates the buyers’ positions weakening. RSI is within the neutral area.
In the potential scenario, the next stop for the USD/JPY could well be around level at 103.40. If the pressure persists the price will extend its losses towards 103.00.