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The Japanese yen is among the strongest dollar’s rivals this Thursday, as USD/JPY trades around 104.70, pressuring daily lows and maintaining its bearish stance in the short-term. The July low at 104.18 is exposed, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“As widely expected, the BoJ left its monetary policy unchanged, while upgrading its economic assessment. Policymakers said that the economy has started to pick up ‘gradually,’  following the setback caused by the coronavirus pandemic. As usual, they reiterated that would add easing if necessary, although without hinting any action for the foreseeable future.”

“The 4-hour chart shows that USD/JPY remains well below a bearish 20 SMA, which keeps accelerating south below the larger ones. Technical indicators, in the meantime, have stabilized well into negative territory, after correcting extreme oversold conditions.”

“The USD/JPY pair has room to extend its decline towards 104.18, July low, should the pressure remain on the greenback.”