USD/JPY (current price: 103.50)
The pair is down by 400 pips from its highs from last week already as the Bank of Japan delivered nothing new this morning. USD/JPY is still trading in the declining long-term trend that defined the Yen’s market in the last more than half a year. The cross is trading near the prior swing low of 103.50 today in early trading after bouncing lower off the other crucial support/resistance level at 105.50. Further support is found at 101 currently, with overhead resistance looming near 107.50 as well.
Our assessment: USD/JPY is still in a declining long-term downtrend, and the momentum indicators are back to neutral following the strong two-week rally in late July, which might lead to another down-swing in the coming weeks.
