USD/JPY to challenge the 103.00 figure and approach 102.20

Market players keep selling the greenback, following the US Federal Reserve monetary policy announcement. The USD/JPY pair is flirting with the 103.00 level and risks a slip towards 102.20, Valeria Bednarik, Chief Analyst at FXStreet, reports. 

Key quotes

“Hopes about a Brexit deal and a US stimulus package kept the safe-haven currency under pressure ever since the week started. The Federal Reserve maintained its monetary policy unchanged and pledged to keep supporting the economy. Policymakers reiterated their dovish stance but refrained from hinting at more easing.”

“The USD/JPY pair maintains its bearish tone in the near-term. The 4-hour chart shows that technical indicators have reached oversold conditions, partially losing their bearish momentum but without signs of changing course. The 20 SMA accelerated south below the larger ones, reflecting selling interest strength.”

“Support levels: 102.70 102.20 101.80 – Resistance levels: 103.15 103.50 103.90”