The weakening of USD halted as global central banks made moves to limit appreciation in their currencies. Japanese officials are trying to tame yen, which is the best performing major currency in the last few weeks.
On Thursday, Bank of Japan Governor Haruhiko Kuroda in Washington said that the yen’s “excessive” rises has been corrected in the past few days. Kuroda remarks were notable because that was the first time he described the yen’s strengthening with the word “excessive”.
According to Kuroda, BOJ was working closely with other authorities in order to avoid any disruption to banking operations. However Kuroda said that there has been no report of such disruption so far.
Technical analysis shows that USD/JPY currently is under pressure. The price has fallen to below 20 MA and 50 MA on hourly chart, testing the intraday key support at 108.623. If the price managed to break the support, yen may strengthen further to 108.325-108.076.
Note that hourly stochastic and CCI are oversold. As alternative trading strategy, you can wait for bearish signal confirmation on a pull-back move to within the Fibonacci resistance area at 109.041-109.300 as signal to go short with target at 108.881-108.623.
You should be careful if the price managed to break above the resistance at 109.300 because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 109.484-109.718.