Bulls gave all the power they had and almost gave themselves one more chance. The last week USD/JPY pushed above the important resistance level at 104.31. However, this upward movement was accompanied by bearish divergence, shown by MACD, which hinted of bulls weakness.
The fundamentals now support the appreciation of the US dollar, which would mirror the increase in this currency pair. The difference in the Fed’s BoJ’s monetary policy will continue to influence the dynamics in the pair. The Bank of Japan decided to keep its economic policy unchanged, but the yen react to the news significantly.
Currently the USD/JPY pair fell to lower levels and pined intraday low at 103.787. As seen on the chart some further slides are very possible.
RSI is located in the oversold area, currently around 24%. Momentum is also situated at the oversold territory and both indicators are displaying bearish slopes.
Support is placed now at 103.50 and lower at 103.10. Resistance is seen at 104.20 and 104.62.