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- USD/JPY continues its decline below key level 108
USD/JPY continues its decline below key level 108
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The yen remains under intense pressure even after BOJ's decision on interest rates. The Bank kept the basic interest rate at -0.10%, which was expected. Thus, the BOJ indicates that it is refraining from further action, but that the Kuroda press conference, which we expect to take place soon, has not passed. It is expected to start around 8:30 am. The yen generally reacts most strongly with news of the trade war and when we have risk-offs, but in this case we do not have such catalysts.
From a technical point of view, the price makes an attempt to pierce the wedge with a wedge, if today's candle closes, we will have a price action bearish engulfing, which can confirm an additional decrease in the price. The currency pair has also gone below the key level of 108, so keeping it below would be just another negative factor. If the yen appreciation continues even when we are at risk, we expect the decline to continue to the area at 61.8 Fibo or 107.458, where we will expect the price to find some support.
Alternatively, with a failure to break the wedge, close above 108 and break down the potential price action, we could expect a renewed weakening of the yen, back to levels of 108.460 and an attempt to climb to 109.311.
Trader Martin Nikolov Read more:
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