FxWirePro: USD/JPY bearish pressure builds after rejection at 4H 200 SMA

USD/JPY chart - Trading View 

USD/JPY is trading in a narrow range amid the cautious market mood with session highs at 107.36 and lows at 107.18. 

Mixed market sentiment and a broadly subdued US dollar amid growing coronavirus risks and escalating Australia-China tussle dents the appetite for risk.

Comments from Bank of Japan (BOJ) Governor Haruhiko Kuroda keep the market mood cautious.

Kuroda said that the BOJ is watching the impact of the virus and the central bank won’t hesitate to ease the monetary policy further if needed.

He noted that the “Financial system stable" and "The economy is in an extremely severe state and likely to remain in a severe state.”

Major and minor trend are neutral. Volatility is low. The pair has been rejected at 4H 200 SMA multiple times raising scope for weakness. Upside also capped at 21-EMA.

Resumption of weakness will see test of 106 levels. 200-DMA is major resistance at 107.91. Decisive break above required for upside.

Major Support - 106.64 (Lower BB)

Major Resistance - 107.81 (110-EMA)