Dollar-Yen appears poised July on a flat note, thus a Doji candle stick formation is in progress on monthly chart. Monthly high and low stand at 107.494 and 99.985.
Doji candle represents indecisiveness and that goes well with the fundamental as well technical picture.
BOJ's disappointment today has left markets wondering whether the central bank has lost control or today's less than dovish move was a part of 'wait and watch' game.
In my opinion, BOJ's decision today largely reflects exhaustion due to overuse of monetary stimulus and is also a warning for other major central banks who are on a easing binge.
There isn't any clarity with regards to Fed rate hike as well.
Meanwhile, in technical terms, bear exhaustion is understandable, given they have been pushing the pair lower since January.
Overall, it appears area around 100.00 (assuming there is no 'August' event in the markets) could continue to see buying interest in August, while the upside appears capped around 107.00-108.00 levels.
Doji candle represents indecisiveness and that goes well with the fundamental as well technical picture.
BOJ's disappointment today has left markets wondering whether the central bank has lost control or today's less than dovish move was a part of 'wait and watch' game.
In my opinion, BOJ's decision today largely reflects exhaustion due to overuse of monetary stimulus and is also a warning for other major central banks who are on a easing binge.
There isn't any clarity with regards to Fed rate hike as well.
Meanwhile, in technical terms, bear exhaustion is understandable, given they have been pushing the pair lower since January.
Overall, it appears area around 100.00 (assuming there is no 'August' event in the markets) could continue to see buying interest in August, while the upside appears capped around 107.00-108.00 levels.
