At the meeting on Friday, the Bank of Japan decided to keep its mostly unchanged. BoJ Governor stated the Regulator aims at achieving an rate of 2 per cent; however, much depends on the price of oil . Therefore, Japan’s might start taking more decisive action soon.
Today, the US Dollar is gaining back its losses against the Japanese Yen . As the and the Bank of Japan have different approaches to , the USD/JPY pair tends to be strengthening in the medium term.
Support and resistance
Strong support levels are 121.35 ( on the ) and 120.55 (EMA200 and the lower border of an on the , 61.8% Fibonacci). After the consolidation below the level of 120.55, the price might decline further to 120.00 and 118.85.
If the price overcomes the resistance levels of 121.50 (50.0% Fibonacci), 122.10 (EMA200 and EMA144 on the 4-hour chart), 122.50 (38.2% Fibonacci), an upward trend might resume towards 123.70 (23.6% Fibonacci), 124.50 and 125.00 (the upper border of the on the ).
On the , OsMA and recommend short positions; on the 4-hour chart, the indicators are turning to long positions, suggesting a downward correction is, possibly, nearing the end.
Support levels: 121.35, 121.00, 120.55, 120.00, 118.85.
Resistance levels: 121.50, 122.10, 122.50, 123.00, 123.70.
Long positions can be opened from the current level with targets at 121.90, 122.10, 122.50, 123.00, 123.50, 123.70, 124.00, 124.50, 125.00 and stop-loss at 121.20.
Short positions can be opened from the level of 121.10 with targets at 120.55, 120.00, 118.85 and stop-loss at 121.60.