The Japanese yen is still considered as safe-haven currency. The economy is also giving signals that causes concern. Consumer prices data gradually rising, approaching the BOJ’s 2 percent target until mid-2014. Currently there is some kind of sign of inflationary pressure in Japan. However, prices in February did not rise, economy contracted last quarter and wage growth is considered slow. Core CPI possibly will be zero from March, or even negative.
USD/JPY is still moving within the Fibonacci area at 108.180-108.527. Hourly stochastic and CCI are overbought. As today’s trading strategy, wait for bearish signal confirmation within the Fibonacci area as signal to go short with target at 107.966-107.620.
However note that 20 MA and 50 MA are flat on hourly chart and the price currently is moving above those MA’s. This technical facts suggest that the bearish pressure is not too heavy anymore. Therefore, we should be careful if the price managed to break above the resistance 108.527 because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 108.773-109.087.