The FOMC Minutes somewhat disappointed yesterday, causing the USD/JPY currency pair to retreat from its intraday highs. Ultimately, the pair remained flat on Wednesday, as demand at the 100.00 psychological level was sufficient to keep the exchange rate elevated. However, the Buck remains under the risk of falling below the 100.00 mark, with technical studies supporting this scenario. The weekly S2, located at 99.78, is the closest support, while a much stronger cluster rests around 98.75.

  Market managed to retreat as managed to hold trades below resistance 102.65-85 as we advised last week.

  The yen erased all its latest gains after the Jobless Claims Report. Now traders are demanding further action from the Bank of Japan. If the pair continues softening the central bank will have to act accordingly.

  For the second consecutive week the USD/JPY currency pair bounced back from the 102.50 level, unable to surge higher. Even though the Buck found support, represented by the weekly PP, at 101.76 yesterday, technical studies suggest this level is likely to be pierced today. The key support is located around 100.70 mark, namely the 50% Fibo and the weekly S1. In case this area gives in, the pair would then risk falling below the 100.00 mark and possibly even a retest of the falling wedge's lower boundary around 96.00. However, another rebound is eventually expected, which would trigger USD-buying and ultimately lead to an upside breakout from the wedge.

  Market managed to break below 101.50 yesterday where it was advised that below this level more drop may hit market toward 99.00-50 zone.

  The yen strengthened when the BoJ increased its purchases of ETFs (exchange-traded funds). However, the BoJ’s statements disappointed investors who expected bolder measures from the regulator.