USD/JPY plunges to session lows

FXstreet.com (New York) - The USD/JPY pair weakness has engulfed the pair since the overnight session and subsequent BoJ decision, however European trading has seen a collapse to session lows.

USD/JPY roiled by BoJ

Overnight today in Japan, the BoJ decided to hold its interest rates at 0.1%, which is in line with consensus expectations. In addition, Machine Tool Orders (YoY) fell by -7.4% in May, which improved upon -23.6% in the previous month.

In these moments, the pair is trading at 97.15/22, or -1.67% below it’s opening. Following a drop below calculated support at 97.88, Mataf.net analysts identify the next short-term supports at 97.02, then 96.32. Meanwhile, resistance lies ahead at 99.43, ahead of 100.14, and 100.99.

USD/JPY bearishness prevalent below 99.85

According to the Technical Analyst Team at ICN.com, “The USD/JPY pair touched the previously broken support level of the ascending channel, then moved back to the downside proving that bearishness is still valid, as the upside move yesterday and last Friday is merely a retest to the broken support level. Therefore, trading below 99.85 is negative and might revive intraday bearishness today.”

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