Yesterday, the US dollar declined against the yen, reaching the last week lows. Now the level 124.00 is a strong resistance level.
The Monetary Policy Committee of the Bank of Japan stated that the country's economic recovery continues to grow at a satisfactory pace. Also the issues of recent poor performance of advanced economies and the battle against deflation, which is caused by low energy prices, were discussed. However, in the long term, the inflation is expected to rise, the board said. The refinancing rate remained at 0.1%. Moreover, in 2016 it is planned to reduce monetary policy meetings from the current 14 down to eight.
The demand for the yen has weakened somewhat after the Greek banks were opened, but it will not significantly affect the dynamics of the Japanese currency.
Support and resistance
The nearest resistance level is 124.00 (last week high and MA with 70 period).
The support level is 123.23(the last week significant support level).
Open short positions from 123.65 with the target at 123.23 and stop-loss at 124.00.
If the level 124.00 is broken through, the price should consolidate above it and the uptrend should resume.