FXStreet (Córdoba) – USD/JPY is going through a phase of consolidation after dollar sell-off triggered by dovish-ish Fed found support at the 122.45 area on Thursday.
The dollar managed to recover some ground on Friday but the upside was capped by the 123.20 area. The BoJ decided to leave its monetary policy unchanged as expected, and turned out to be a non-event for the yen.
In the absence of new fundamental developments and no first-tier data over the last hours, USD/JPY was confined to a rangebound phase around the 123.00 level. USD/JPY is currently trading at the 122.80 area, little changed on the day but on track for a weekly loss.
USD/JPY technical perspective
“In the 4 hours chart, the technical indicators have turned south below their midlines, maintaining the risk towards the downside in the short term”, said Valeria Bednarik, chief analyst at FXStreet. “The pair has a strong static resistance level around 123.30, so it will take a recovery above it to confirm additional advances and revert the dominant bearish tone”.
Bednarik locates next support levels at 122.80, 122.40 and 122.00, while she places resistances at 123.30, 123.70 and 124.10.
(Market News Provided by FXstreet)