USDJPY REJECTED AT 200 WEEK MOVING AVERAGE

Following the release of the minutes of the Bank of Japan July meeting, the USDJPY pair briefly moved above the 200 week moving average, reaching the 111.34 level, as BOJ members reiterated a strong commitment to purchasing Japanese bonds.

However, the pair was strongly rejected from the 200 week moving average and now trades back below the 111 level, as the U.S dollar index continues to weaken, amid further U.S political uncertainty.

The USDJPY pair remains bearish on all time frames and continues to trade well below all major moving averages.

Key intraday resistance for the USDJPY is found at the daily pivot point, at 111.04. Further resistance is found at the 200 week moving average at 111.22, and the weekly pivot point, at 111.67.

To the downside, the 110.90 Fibonacci level remains the key for further USDJPY intraday losses, whilst below this level, bearish momentum is likely to accelerate and target the 110.62, 110.22 and 109.89 levels.