USD/JPY: Momentum indicators in negative territory

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that USD/JPY posted a 2-week low of 118.27 and trades steady near it, having showed little progress this Monday.

Key Quotes:

"The pair has been under pressure ever since the BOJ dismissed chances of further stimulus, with the pair trading lower in range for the past two days."

"In the short term, the 1 hour chart shows that the price stands below its 100 SMA currently acting as dynamic resistance around 118.60, while the Momentum indicator stands directionless around 100 and the RSI aims slightly higher around 38."

"In the 4 hours chart, technical indicators diverge between each other in negative territory, with the Momentum indicators heading north below 100, but the RSI maintaining a strong bearish slope around 40, favoring overall a new leg lower if the 118.30 is finally broken."

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