USD/JPY is trading in narrow range, market eyes BOJ Policy statement.

• RES 4: 121.18
  
  
• RES3 :120.81 (Apr 13^th high)
  
  
• RES 2: 119.94 (200 day 4HMA)

• RES 1: 119.32 (20 day 4HMA)

PRICE: 119.10 @ 05:20 GMT 

• SUP 1: 118.50 (Apr 20^th low)

• SUP 2: 118.16 (61.8% retracement of 115.85 and 122.01)

• SUP 3 -116.85 (Feb 3^rd low)

• SUP4-115.85

COMMENTARY:

USD/JPY has slightly recovered after making a low of 118.89. Overall trend is neutral and any bullishness can be seen only above 120.06 level.

The market awaits BOJ monetary policy which will be released on Apr 29^th Thursday. The BOJ is expected to inject more stimulus into the economy. It is also going to release its semi-annual this week, which may include downward revisions to both growth and inflation forecasts. So further injecting of stimulus will drag the JPY further down.

Short term bullish invalidation level-118.16. Any break below 118.16 will drag the pair further down till 116.85/115.90 in short term.

On the upside minor resistance is around 120.05 and any break above would extend gains till 120.81/121.18.

The minor supports are 119/118.45/118.15.

Indicator (4 hour chart)

CCI (50) - Sell

Woodies CCI (14) - Sell

Ichimoku- Sell

It is good to buy at dips around 118.70 for the target of 120 with stop around 118.15.