USD/JPY Range Remains Intact, Eyes 121.35 Resistance
The USD/JPY pair has extended its limited range for one more week, still glued to 120.00 price zone, and with no aims to break it according in the nearer term.
By the ends of October, the FED and the BOJ will have economic policy meetings, in which the last will review its forecast and economic conditions, and there’s some speculation pointing for an extension of Japanese monetary stimulus by then.
But in the meantime, the range set late August between 118.65 and 121.35 will likely prevail. Technically, the daily chart shows that the price has continued developing well below the 200 DMA that converges with the main resistance and top of the range a 121.35, whilst the 100 DMA extended its decline above this last.
In the same chart, the technical indicators are still lacking directional strength around their mid-lines, maintaining the neutral stance. In the short term the 4 hours chart shows that the price is around its moving averages, whist the technical indicators are also neutral, with a tepid bearish slope right above their mid-lines.