USD/JPY analysis: bears ready to push it further down
|USD/JPY Current price: 108.10
- Fed's dovish statement gave the Yen a boost ahead of BOJ's announcement.
- US Treasury yields flirting with multi-month lows following FOMC's decision.
The USD/JPY pair dived below the 108.00 figure following the US Federal Reserve announcement, falling as low as 107.89 before getting to bounce a bit. US Treasury yields fell after the Fed's monetary policy announcement, as the central bank is preparing to cut rates in the near term. The yield on the benchmark 10-year note fell to 2.03%, flirting with multi-week lows. This Thursday, the Bank of Japan is having a monetary policy meeting this Thursday, although, as usual, there's no specific date for the release of their conclusions. The BOJ is largely anticipated to leave its monetary policy unchanged, with the rate at -0.1% and focusing on their 'close to zero' yields ' policy. The only new will be that the central bank will provide fresh forecasts on inflation and growth, although no shocking headlines are expected from there. The country will also publish the April All Industry Activity Index, seen at 0.7% vs. the previous -0.4%.
The USD/JPY pair is currently trading at around 108.xx, looking short-term bearish according to technical readings in the 4 hours chart, as technical indicators head firmly lower within negative levels, now at over two-week lows. Also, the pair has moved away from its 20 SMA, currently at around 108.50, while the 100 SMA accelerated south above the shorter one, approaching it. The bearish momentum is set to accelerate if the pair loses 107.81, this month low.
Support levels: 108.10 107.80 107.45
Resistance levels: 108.90 109.20 109.50
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