The agile recovery of the yen faded out when the demand for the safe assets dimmed. Earlier, the Standard Chartered Bank sharply lowered its forecast for the pair at the end of the third quarter. The Bank noted that the BoJ and the Ministry of Finance can expand their stimulus measures to support the country economy after the Brexit.
Current situation
The dollar tried to break through 102.50 during the day after rolling back earlier at the Asian session. The pair reached the same level where it stopped the day before – 102.80. The resistance stands at 103.50, the support is at 102.50.
The indicators MACD and RSI stabilized. Even though MACD remained in the negative area its histogram grew, giving us a buy signal. If the indicator keeps heading north the growth of the pair will be continued. RSI is in the neutral area. The indicator bounced off the oversold area, that is a buy signal. The USD/JPY is below the Moving Averages (50, 100 and 200) which are moving downwards. The 50-day moving is the closest resistance for the instrument. The pair is oversold on the daily chart and is recovering.
Trading recommendations
If the USD/JPY continues growing its next stop could well be at 103.00 – 103.50 region. A break below 102.00 would open the way to 101.40 - Fort Financial Services experts said (rated among the TOP Forex Brokers Masterforex-V World Academy http://www.masterforex-v.com/).
