The statement of the Bank of Japan on doubling of the two programs to stimulate lending in the country had only short-term positive effect on the quotes of pair USD/JPY. Despite the loose monetary policy of the central bank of the country, several factors constrain the bulls. Among them the continuing decline of quantitative easing program, which led to an outflow of capital from emerging markets into safer assets. On the other hand leads to the weakening of the dollar declines in USD/JPY.
The index of business activity in Japan in December decreased by 0.1% vs. a forecast of 0.2% rise. Report of the Bank of Japan has coincided with analysts' expectations and did not affect the movement of the pair USD/JPY.
For the resumption of growth the price should gain a foothold above 102.70. Support is located at around 102.00.
Wish you the profits!
FXFINPRO Capital Analytical department.