USD/JPY fell after the speech on Bank of Japan (BOJ) Governor, Haruhiko Kuroda. Weaker USD also gave strength to the yen. Meanwhile, stronger yen weigh on Japanese stock markets. Nikkei 225 slipped 0.22%. It has lost more than 12% since February 1.

Earlier, Japanese chief cabinet secretary Yoshihide Suga said that excessive market volatility would affected the Japanese economy in a bad way.

Mr. Kuroda said that BOJ will maintain quantitative and qualitative easing (QQE) and apply negative rates for as long as needed in order to achieve 2% inflation target. If the central bank thinks it would be necessary, BOJ will take additional easing steps by prompting quantity, quality of asset buying and change in interest rates.


USD/JPY remains under heavy pressure, capped by negative trendline as seen on hourly chart. 20 MA and 50 MA are still falling on hourly chart and the price currently is moving below those MA’s, testing the intraday key support at 108.006. If the price managed to break the support, yen may continue to strengthen to 107.293-106.695 today.

Note that hourly stochastic has crossed up and CCI is oversold. This makes a pull-back move will be possible. In that case, as alternative scenario watch for bearish signal confirmation on a pull-back move to within the Fibonacci resistance area at 109.008-109.627 with target at 108.625 or 108.006 in extension.

Be careful if the price managed to break the resistance at 109.627 because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 110.068-110.629.

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