USD/JPY Current price: 121.46
View Live Chart for the USD/JPY
Back bearish, break of 121.05 required. The Japanese Yen appreciated during the Asian session, as the BOJ announced some changes in its economic policy, in an effort to boost local inflation that remains far below the 2.0% target. The Central Bank established a new program for purchases of ETF's , at an annual pace of 300B, and expand the eligible collateral for Bank credit, including foreign currency denominated loans and housing loan portfolios. The USD/JPY has lost almost 150 pips following the news, finally finding buyers around 121.05, level that contained declines also during the European morning. Technically however, the pair is once again bearish, with the 1 hour chart showing that the price has broken below its 100 and 200 SMAs, while the technical indicators are now bouncing from oversold levels, but lack upward strength and remain far below their mid-lines. In the 4 hours chart, the bearish potential has lost momentum but is far from reversing, indicating the risk remains towards the downside as long as the price holds below the 121.70 level, now the immediate resistance.
Support levels: 121.05 120.60 120.30
Resistance levels: 121.70 122.20 122.66
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