The US Dollar (USD) inched lower against the Japaneese Yen (JPY) on Monday, decreasing the price of USDJPY to less than 110.00 amid release of minutes from the Bank of Japan (BoJ). The technical bias remains bearish because of a lower high in the recent upside move.

Technical Analysis

As of this writing, the USDJPY pair is being traded around 109.53. A hurdle may be noticed near 110.84, an immediate trendline resistance area ahead of 111.00, the pychological number and then 111.39, the high of the last major upside rally as demonstrated in the given below daily chart.

On the downside, a support may be seen near 109.26, an immediate trendline support area ahead of 107.97, the 50% fib level and then 107.55, another trendline support level as demonstrated with pink color in the above daily chart. The technical bias shall remain bullish as long as the 107.55 support level is intact.

BoJ Monetary Policy Minutes

A single member of the monetary policy committee insited in additional easing to accelerate the Consumer Price Index (CPI) while other members were in favor of keeping the monetary policy unchanged, minutes from the Bank of Japan (BoJ)’s April meeting revealed on Wednesday.

The BOJ kept its monetary policy unchanged in April meeting but dropped the timeframe it had set for hitting its 2 percent inflation target, in a surprise move analysts say is aimed at keeping market expectations for more stimulus in check.

Trade Idea

Considering the overall technical and fundamental outlook, selling the USDJPY pair near current levels appears to be a good strategy in short to medium term.