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USDJPY distances itself below 150 ahead of BoJ rate decision
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Bullish trend loses steam; sentiment might worsen below 149.43
USDJPY could not reap strong gains above the 150.00 round level last week, coming under renewed selling pressure on Monday after a muted Friday.
The weakening technical indicators and the break below the 20-day simple moving average (SMA) are currently promoting the slide in the price. A continuation lower could initially meet the 50-day SMA at 148.30, while a steeper decline could stall within the 146.50-147.00 area. Then, the focus might shift straight to the channel’s lower boundary seen at 144.60.
There is a bearish evening star candlestick pattern created at the top of the uptrend. A bounce back above the 150.00 mark would violate the negative formation, likely lifting the price forcefully towards the 151.93-152.35 resistance zone. Even higher, the pair could retest the 153.35 barrier taken from the second half of 1990.
Summing up, the short-term outlook for USDJPY is leaning to the downside. A clear close below the 20-day SMA could motivate additional selling.
