USD/JPY (a 4-hour chart)
The yen grew when Japanese monetary and fiscal easing plans disappointed investors’ expectations. The BoJ will use 6 trillion yen for the fiscal stimulus against the expected 10 to 20 trillion yen.
Bears have the ball now. Traders pushed the dollar lower from 3-week highs yesterday. The instrument lost about 1% during the course of the day. The resistance is at 105.30, the support comes in at 104.50.
MACD moved into the negative territory which indicates the sellers’ positions strengthening. RSI reached the oversold area which is another sell signal.
The instrument broke the 50, 100 and 200 Day-EMAs in the 4 hours chart. The moving averages (50, 100 and 200) are changing their upwards direction to the downward one.
The bearish views are getting more popular, moreover, the indicators recommend short positions. The price is expected to resume its falling towards 103.50.