Technical analysis and trading recommendations -https://fxpcm.com/en/fx/usdjpy-pair-has-stabilized-level-10425-17062016
With the opening of today's trading day the USD / JPY pair traded in a narrow range near the level of 104.25. The inaction of the Bank of Japan, the Federal Reserve, as well as the uncertainty associated with the upcoming referendum in the UK with the question of the further stay of the country in the European Union, leading to an increase in demand for safe-haven assets of gold, yen, pushed the USD / JPY pair prior to new yearly lows near the mark 103.55.
After the decision of the Bank of Japan to maintain the current monetary policy in the country unchanged Japanese stock index Nikkei Stock Average on the results of yesterday's trading in Asia fell 3.1% to 15,434.14 points, closing at the lowest level since 12 February.USD / JPY The pair dropped to the 104.15 mark, and during the European session, dropped to a mark of 103.55, falling to the lowest level since September 2014.
This followed on after the decision of the bank's press conference Governor of the Bank of Japan Haruhiko Kuroda said, as always, that the bank "did not hesitate to take additional easing measures if necessary", expecting that inflation will reach the target level in fiscal 2017.
Strengthening of the yen is a cause for concern in the government as a strong national currency hinders the restoration of economic growth and inflation in the country, as well as harms exporters in Japan. So, today, Japan's Finance Minister Taro Aso has strengthened warnings about the national currency. Aso said that government must prevent further appreciation of the yen, which he calls "one-sided, sharp and speculative" and promised to "act more firmly than before," if needed.
The Bank of Japan, as the Fed did not take any action on the eve of a referendum in the UK. Probably, the Bank of Japan also will not interfere in the auction with the intervention buying of the yen against other currencies, fearing undue expenditure of foreign exchange reserves in the event of the UK from the EU structure. Indeed, in this case, according to some economists, the pair GBP / JPY could fall to the level of 133.00 (from the current level 148.00), and the pair USD / JPY - to 101.00 (from the current 104.00).
Anyway, apparently, before the publication of the results of the referendum in the UK on June 23 the demand for gold and the yen, as safe-haven assets will be maintained. This means that the pair USD / JPY will remain under pressure, and any corrective gains will be limited. The most probable range of 103.50 - 105.00.