USD/JPY: neutral on Central Bank watch - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair failed to regain the upside, trimming most of its early gains during the US afternoon.
Key Quotes:
"The Japanese yen opened lower, undermined by comments from BOJ's Governor Kuroda, who said that the Central Bank won't hesitate to cut rates further into negative territory. Nevertheless, the market is uncertain over the possibility of a September cut, and even do, of the effects that such measure may have over the economy or the yen. The pair advanced intraday up to 100.93, but quickly reversed course, to settle a handful of pips above the 100.00 level, and at risk of a bearish breakout.
Short term, the 1 hour chart shows that the pair was rejected by selling interest around a bearish 200 SMA, while is now hovering around a horizontal 100 SMA, and while the technical indicators hold within bearish territory, with no clear directional strength. In the 4 hours chart, the price remains well below its moving averages, with the 100 SMA now around 101.25, and indicators bouncing modestly from their mid-lines, but lacking strength, leaving the pair mostly neutral."