Currently, the USD/JPY was trading at 111.24, rose 0.17% on the day, after you have recorded a daily maximum at 111.61 and a minimum at 111.02.
The USD/JPY has been sold under the increase of the support upward channel bullish short-term 111.20 to 111.50 bears took above at 111.60 prior to delivery dry of the trade clean and returned to test the psychological level of 111.00. There has been a trade clusters around 111.10/30 while the market consolidates waiting for a new boost from the GDP data american morning.
The data today were varied and nothing too important came from the durable goods or housing data. The greatest part of the business was conducted during the night in the back of the Bank of Japan. The Bank of Japan raised its forecast of GDP for the fiscal year to 1.6% from 1.5% and for the fiscal year of 2018, to 1.3% from 1.1% and it still seems (unreasonably) optimistic about the inflation. It lowered its forecast to 1.5% to 1.4% this year, leaving the forecast FY18 unchanged at 1.7% vs. the initial forecast for the FY19 is 1.9%.
Levels of USD/JPY
Valeria Bednarik, analyst leader of FXstreet explained that, technically, the 4 hours chart maintains a neutral stance to bullish. «The indicator RSI remains flat around 67, while momentum heads slightly lower close to the readings of overbought. In addition, the price continues to evolve above its SMA 100 and 200, with the largest acting as an immediate support at 110.95, the level to break to confirm a bearish extension, while just above 112.00 the uptrend will continue to develop.»