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USD/JPY Trading at a Key Decision Level

BoJ was hawkish, and FOMC the meeting minutes was dovish. These fundamental factors are bearish for the USD/JPY pair.

However, at the start of the 5/22 session, the USD/JPY rallied to a new high on the week, around 101.70.


(usdjpy 4h chart)

It is stalling now around 101.70. Traders are seeing the pair at a key decision level with a few resistance factors seen in the 4H chart. There is a falling trendline, previous support/resistance, and the 50SMA. The RSI is also at 60 with the stochastic above 80.

To me, these are signs that the market is ready for bearish continuation. A break below 101.40 should put the focus back to the recent low at 100.80.

A break above 102 however should shelve the bearish outlook, but a break above 103 will be needed to re-introduce a bullish outlook.