USD/JPY Forecast: Bearish momentum to extend
|USD/JPY Current price: 102.74
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Bearish momentum to extend. The USD/JPY pair plunged to 102.61, its lowest in two weeks, already pressured by the BOJ's latest economic policy decision, which resulted far less than the aggressive stimulus market was expecting. The Bank of Japan left the benchmark rate at -0.1%, while increasing its exchange traded funds purchases of ¥2.7 trillion, up to ¥6 trillion, and expanded its USD lending program to $24 billion. The pair fell down to 102.69 after the announcement, but recovered up to 103.96 ahead of US data release. The poor figures sent the pair back down, with the technical picture favoring a downward continuation, given that in the 1 hour chart, the technical indicators head sharply lower in oversold territory, while the 100 and 200 SMAs head lower well above the current level. In the 4 hours chart, the technical indicators present a strong downward momentum, while the price has broken below its 100 and 200 SMAs, also supporting a downward extension, with market players now eyeing 101.60, a major static support.
Support levels: 102.50 102.10 101.60
Resistance levels: 102.95 103.40 103.80
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