USDJPY IGNORES DOLLAR STRENGTH AND DOVISH BOJ MINUTES

The USDJPY pair continues to retreat towards the 111.20 support level, after yesterday being capped by resistance at 111.81, just below the psychological 112 level. The USDJPY pair has looked past a increasingly stronger U.S dollar, with traders selling the pair as equity markets have opened somewhat negative today.

Equally the release of today's  Bank of Japan minutes had no impact on the USDJPY pair, with an overall dovish minutes statement, showing that Japanese policymakers expect domestic inflation to remain weak, with Bank of Japan members seeing economic risks still skewed to the downside.

Technically the pair remains intraday bearish below the 111.45 level, with the H1 time frame 20 period moving average, now converging with daily time frame 50 period moving average around the 111.43-48 region.

The H4 time frame 20 period moving average at 111.27 remains critical support for the USDJPY pair. H4 time frame indicators show that heavy intraday losses towards the 110.50 level, remain possible whilst price trades below the 111.27 support level.