- Speculation that the BoJ will be adding further stimulus very soon is keeping the yen subdued.
- USD/JPY has broken major trendline support at 106.40, has hit session highs at 106.72 before pating some gains to currently trade at 106.63.
- Intraday bias higher, focus remains on BoJ and FOMC policy meets, additional stimulus from BoJ likely while FOMC is expected to hold.
- Techs support further upside in the pair, weakness only below 105.42.
- Supports on the downside are seen at 105.98 (50-DMA), 105.68 (10-DMA) and then 105.42 (July 21 low).
- Resistance on the upside is seen at 107, 107.90 (June 7 high) and then 108.15 (100-DMA).
Recommendation: Good to buy on dips around 106.50, SL: 106, TP: 107/ 107.25/ 107.90
