USD/JPY: stable on 102.20 support in weak dollar environment

USD/JPY is crawling along the bottom of the recent supply at 102.20 in a quiet start in Tokyo.

USD/JPY has been beaten with a stick on the back of poor economic data from the US and a BoJ that has not delivered as much as what had been anticipated at last week's meeting.

Well, well, well ... Do you still think the Fed will hike rates?

Instead, while Japan’s national accounts will not be released until August 15th, the Bank of Japan decided not to wait by virtually doubling its purchases of ETFs although leaving key rates JGBs’ purchases on hold. However the move should still reflect the BoJ’s determination to limit the yen’s appreciation, albeit unsuccessfully so far. We will get the boJ minutes tomorrow.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that "In the 1 hour chart, the price remains well below a bearish 100 SMA, currently around 104.10, while the technical indicators have recovered from oversold readings, but faltered below their mid-lines and turned back lower, suggesting inexistent buying interest at the time being. In the 4 hours chart, the technical indicators have also resumed their declines near oversold levels, whilst the price is well below its 100 and 200 SMAs, also supporting a downward extension on a break below 102.00."