USDJPY May Hold Range Ahead of BoJ Rate Decision
The USD/JPY pair managed to close the week with gains, albeit the recovery stalled at 121.35, the 61.8% retracement of its latest bearish run.
Both Central Banks, the BOJ and the FED, will have their monthly economic meetings during the upcoming days, and whilst the BOJ is largely expected to remain on hold, the FED can rock the financial world by announcing a rate hike, for the first time in almost a decade.
Therefore, the pair will likely trade range bound ahead of the news, in between 120.00 and 121.35.
Technically, the daily chart shows that the price has been unable to advance beyond its 200 DMA, a few pips below the mentioned Fibonacci retracement, whilst the Momentum indicator turned south and it’s about to signal a bearish breakout, whilst the RSI indicator already heads south around 46, all of which favors the downside.
In the 4 hours chart, the pair presents a neutral-to-bearish stance, as the Momentum indicator heads lower below the 100 level, whilst the RSI stands flat around 53.