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    USD/JPY: now awaits BoJ and risks are to the downside

    USD/JPY is currently offered in the open of Tokyo, with traders getting shorter of the greenback post the Fed decision to hold and extra dovish tone signalling that there will be little chance of a rate hike next month as well. Yellen did, however, suggest that all meetings are live and that should there be a turn of events, she will not rule out a hike next month of at any further stage in 2016. USD/JPY dropped from just below the 106 handle and made fresh lows for 2016 of 105.42 before recovering back to 105.85 to trade sideways thereafter. We now turn heads to the Japanese Central Bank who is mainly expected to remain on-hold. In such an event, the Yen may get a further boost in the session. USD/JPY levels105.00 is a key downside target while technical readings favor the downward continuation, as  noted by Valeria Bednarik, chief analyst at FXStreet. "in the 4 hours chart, the technical indicators have turned modestly lower within negative territory, whilst the 100 SMA has crossed below the 200 SMA both far above the current level."


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