USD/JPY (a 4-hour chart)
The yen strengthened after Haruhiko Kuroda’s words. According to Kurodа the regulator was ready to use every available tool to achieve its 2% inflation. The Central Bank is also ready to implement additional stimulus measures if needed.
After testing 100.00 support zone the price bounced off and slightly recovered. The upward momentum faded at 101.00 where the price turned around. The USD/JPY sharply fell and erased all its previous gains. The pair seems to be making another attempt to break the level 100.40. The 4 hours chart shows that the price met a selling pressure around the 50-EMA. All moving averages keep heading lower in the in the same chart. The resistance is at 101.40, the support comes in at 100.40.
MACD remained at the same level which confirms the strength of sellers. RSI is consolidating within the negative territory.
Our near term scenario is a consolidation above the 100.00 support zone. We expect other attempts to break the 100.00 mark.