USDJPY accelerated lower in early European trading on Wednesday, following a mixed immediate reaction on BoJ’s decision to raise interest rate from 0.10% to 0.25% and unveil plan to halve bond buying.
The decision was positive for yen and added to currency’s broader strength, sparked by recent interventions by Japan’s authorities.
Fresh weakness pushed the price to the lowest in almost 4 ½ months, after break of significant supports at 152.39 (Fibo 61.8% of 146.48/161.95) and 151.66 (200DMA), generating fresh bearish signal, which looks for confirmation on close below these levels.
Bears crack targets at 150.13/00 (Fibo 76.4%/psychological) violation of which to open way for deeper correction of larger uptrend from 127.22 (2023).
Meanwhile, oversold daily studies may provide headwinds to bears and pause the fall for consolidation above pivotal 150 support zone, with limited upticks to provide better selling levels.
Adding to bearish picture is formation of reversal pattern on monthly chart, as the pair is on track for the biggest monthly fall since Oct 1998.
Res: 151.66; 152.39; 153.00; 153.89.
Sup: 150.00; 148.90; 147.42; 146.48.
