The yen is under pressure on the eve of Japanese and the USA Central Bank meetings. The referendum in the Great Britain is another factor that pressured the yen. We believe that the industrial production and retail sales report in China may well set the tone for trading in the new week.
The yen spent last Friday at the level 107.00. The pair remained in a range between levels of 106.60 and 107.30. The resistance is at 107.00, the support is at 106.00.
MACD indicator is in a negative area, the histogram is growing. MACD shows a convergence (that is a strong reversal signal). RSI is still close the oversold level of 30. That is a buy signal. The pair USD/JPY is below the Moving Averages (50, 100 and 200) on the 4 hour chart. The pair is on its lows from 2014 at the daily chart.
The USD/JPY is still oversold and we expect a correction. Once we break above the 107.00 level, we assume that the 108.00 level will be next.