USD/JPY: short-term bearish indicators – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair edged lower this Tuesday, having extended its weekly decline by a few pips, reaching 120.71 before finally bouncing some.

Key Quotes:

“The pair has been developing a tepid bearish continuation ever since the Bank of Japan announced some changes to its facilities program, in a desperate attempt of boosting inflation, which resulted in a strong Japanese yen rally across the board.

Ahead of the Asian opening, the short term picture is bearish as the price is still well below its 100 and 200 SMA, while the technical indicators are heading slightly higher below their mid-lines, following the latest recovery rather than suggesting a stronger advance.

In the 4 hours chart, the bearish potential remains intact as the 100 SMA is accelerating below the 200 SMA, both well above the current level, while the Momentum indicator is turning south below the 100 level and the RSI indicator hovers around 42.”
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Source:: FX Street