USD/JPY: BoJ offers mixed communication, Yen consolidates - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair eased down to 103.14 at the beginning of the day, as BOJ's Governor Kuroda in a speech entitled the Comprehensive Assessment of monetary policy, outlined the negative impact of cutting interest rates below zero.

Key Quotes:

"Despite he also remarked that the Central Bank is willing to proceed anyway, speculation over further rate cuts eased, helping lift the yen.  

The BOJ will have its economic policy meeting next September 21st, while the US Federal Reserve will meet on September 16-17th. The short term picture suggests that the pair has entered in a consolidative stage, as the price is holding above the 103.00 mark.

In the 1 hour chart, the price is hovering around a bullish 100 SMA, while the Momentum indicator aims higher below the 100 level, whilst the RSI heads nowhere around 44, with the upside now looking limited. In the 4 hours chart, indicators are hovering around their mid-lines, while the price remains well above the 100 and 200 SMAs."