TECHNICAL ANALYSIS
On the daily chart, we can see that the USDJPY pair looks to be trading within a rising channel with the upper bound and the 150.00 handle being the target on the upside. The recent bounce on the black trendline and the red 21 moving average led to a rally into the 147.85 resistance where the price started to struggle. A break above the resistance should lead to a rally into the 150.00 handle, while a break below the trendline might cause a selloff into the 145.00 support. On the 4 hour chart, we can see that the price action around the resistance has created an ascending triangle. Generally, when the price breaks out of such patterns, we can see a strong and sustained move following on. So, a break to the upside should see more buyers piling in and target the 150.00 resistance, while a break lower is likely to see more sellers stepping in and target the 145.00 support.
FUNDAMENTAL ANALYSIS
The BoJ kept everything unchanged as expected at the last meeting but tweaked the YCC policy keeping the target band unchanged but giving more flexibility with a hard cap at 1.00%. The Japanese CPI data surprised to the upside recently with the core-core reading reaching again the previous high. The Unemployment Rate surprisingly increased recently, although it remains near cycle lows. BoJ Governor Ueda last week said that his focus is on a quiet exit from the monetary easing and added that the BoJ should have enough data by year end to decide how to proceed. The Japanese wage data last week showed a slowing in wage growth, and this is something the BoJ focuses on particularly.
Disclaimer: FMI's research services provide general information. The Users should evaluate the relevance to their specific needs.