The yen strengthened against the dollar. The Japanese currency gained an additional impulse when the weak economic data in China and Japan worsened the outlook for the economic growth in Asia.
The yen continued its decrease and tested the support at 106.00. The pair remained under pressure due to upcoming events: the Fed and BoJ meetings. The yen is in demand being a safe heaven currency. The resistance is at 107.00, the support is at 106.00.
MACD indicator is in a negative area, the histogram decreased. MACD shows a convergence (that is a strong reversal signal). RSI is 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 pair may decrease further as the risks kept growing in the market amid the upcoming Fed and BoJ meetings. The pair may decrease to 105.30. We still may see a rebound up to 108.00.