Yen soared to the strongest level, as Bank of Japan decided to keep the stimulus. Federal Reserve signaled slower approach of rate hike. Shinzo Abe decided to postone the sales tax hike last month.
Economy stagnation will continue, according to Faraz Syed, economist at Moody’s analytics. He also said that Abenomics has failed to revitalize the economy.
USD/JPY remains under pressure, possibly will move lower to 103.535. 50 MA is falling but 20 MA is rather flat. As alternative, watch for bearish signal confirmation on a pull-back move to 50% Fibonacci area at 104.830, with target at 104.146 and 103.535 in extension.
Be careful if the price managed to break above 104.830 because it will turn the intraday bias to bullish and possibly will be followed by bullish move up to 105.751-106.125.