27 Oct 2014
A well offered USD/JPY sets support at 107.70, then sideways
FXStreet (San Francisco) - After falling 65 pips from intra-day high of 108.35, USD/JPY broke below the 108.00 area before finding support at 107.70. The pair is trading under pressure amid news that the BoJ may look to moderate inflation outlook.
According to Ryan Littlestone from ForexLive, the BoJ may moderate inflation after fall in oil as the bank is "changing view of CPI to accelerate in H2 FY 2015."
At 107.70, the pair bounced back to 107.95 but the movement wasn't strong enough and it is now trading sideways around 108.85. Currently, USD/JPY is trading at 107.85, down 0.28% on the day, having posted a daily high at 108.37 and low at 107.72.
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish.
USD/JPY sentiment
"Technically," Valeria Bednarik from FXstreet comments, "the 1 hour chart shows indicators heading south below their midlines, while 100 SMA maintains a strong bullish slope in the 107.50/60 area, acting as immediate support."
If the USD/JPY recovers its mojo, it will find resistances at 107.95, 108.10 and 108.35. On the downside, supports are at 107.80, 107.70 and 107.60.
According to Ryan Littlestone from ForexLive, the BoJ may moderate inflation after fall in oil as the bank is "changing view of CPI to accelerate in H2 FY 2015."
At 107.70, the pair bounced back to 107.95 but the movement wasn't strong enough and it is now trading sideways around 108.85. Currently, USD/JPY is trading at 107.85, down 0.28% on the day, having posted a daily high at 108.37 and low at 107.72.
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish.
USD/JPY sentiment
"Technically," Valeria Bednarik from FXstreet comments, "the 1 hour chart shows indicators heading south below their midlines, while 100 SMA maintains a strong bullish slope in the 107.50/60 area, acting as immediate support."
If the USD/JPY recovers its mojo, it will find resistances at 107.95, 108.10 and 108.35. On the downside, supports are at 107.80, 107.70 and 107.60.