Report came from the Bank of Japan (BOJ) that is considering possible further rate cut deeper into negative territory. BOJ is scheduled to arrange meeting next week and market expects that the result would be deeper rate cut, lower than current rate at -0.1%.
Local business newspaper, Nikkei, said that the policymakers are preparing to apply negative interest rate as the main thing of its easing policy, in order to stimulate economy and raise inflation.
USDJPY has pulled back into the intraday support area at 102.465-102.850. Golden cross has been confirmed on hourly chart, based on 20 MA and 50 MA. Hourly stochastic has confirmed bullish signal as well, while CCI is just above oversold area.
A rebound likely will occur to 103.041-103.347, but be careful if the price managed to break support at 102.465 because it will turn the intraday bias into bearish and possibly will be followed by bearish move to 102.355-102.049.
Buy within 102.465-102.850; S/L @ 102.355, T/P @ 103.041 or 103.347