USD/JPY: better bid on Fed sentiment - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair extended its advance up to 103.53, a fresh August high, as the divergent bias of the BOJ and the US Federal Reserve continues to weight on the pair.

Key Quotes:

"Supporting dollar's rally were disappointing industrial production figures for July in Japan, as industrial output was down 3.8% year-over-year, against expectations of a 0.8% gain. The pair pared gains in the US session, spending most of it consolidating its daily gains, suggesting the advance may extend this Thursday.

From a technical point of view, he 1 hour chart shows that the 100 and 200 SMAs continue heading sharply higher well below the current level, although technical indicators have lost upward strength and are turning lower above their mid-lines, indicating limited buying interest at this time of the day.

In the 4 hours chart, the Momentum indicator heads modestly higher within positive  territory, while the RSI indicator remains within overbought levels, consolidating around 80. In this last time frame, the 100 and 200 SMAs are located well below the current level, but with no directional strength."