USD/JPY analysis: waiting for a trigger
|USD/JPY Current price: 103.82
The USD/JPY pair closed this past week modestly lower, not far below the 104.00 level. Failure to rally beyond the figure have discouraged bulls, although bears are still reluctant to go against the possibility of a FED's rate hike next December. Adding to yen's strength were comments from BOJ's Governor Kuroda, who said that the bank may push back the timing for hitting its 2% inflation target, given the underlying weakness in price growth, although he reaffirmed that they will "continue to implement an extremely accommodative, expansionary monetary policy not just to reach to 2%, but to allow actual inflation go beyond 2%." From a technical point of view, the pair seems poised to extend its decline during the upcoming days, although further confirmations are needed, given that in the daily chart, technical indicators turned sharply lower, but remain above their mid-lines, whilst the price holds above its 100 DMA, this last at 102.60. In the 4 hours chart, a modest positive tone persists, as technical indicators aim higher with limited strength within positive territory, whilst the 100 SMA maintains a strong upward slope below the current level, now around 103.30.
Support levels: 103.60 103.30 102.90
Resistance levels: 104.20 104.60 105.05
View Live Chart for the USD/JPY
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