BOJ maintains its negative 0.1% rate and expand its monetary stimulus, however the central bank ignores the money base target and said that they will maintain 10-year government bond yield at the current level, which is zero percent. The decision reflects that the central bank rather maintain its easy money policy, but still market is still unsure about BOJ’s ability to reach its inflation target.

Meanwhile, FOMC meeting decided that the Fed must hold the Federal fund rate at 0.50%. USD weakened as response to the decision.

Technical Analysis:

USDJPY currently is under heavy pressure. 20 MA has crossed below 50 MA on hourly chart and the price currently is moving below the MAs. Our intraday key support currently is at 100.087. If the support breaks, USDJPY possibly will keep falling to 99.453-98.743.

Note that hourly stochastic and CCI are oversold. Therefore, as alternative strategy, you might want to look for bearish signal confirmation on a pull-back move to within 100.721-101.431 with 100.087 as target and 99.453 in extension.

Be careful if the price managed to break resistance 101.748 because it will turn the intraday bias into bullish and possibly will be followed by bullish move up to 102.141-102.775.

Trading Plan:

– Sell on break of 100.087; target at 99.453 or 98.743
– Sell on bearish signal confirmation within 100.721-101.431; target at 100.087 or 99.453

USDJPY Chart:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.