The Yen continues declining against the US Dollar.
The main factor that negatively affects the Japanese currency is the different approaches of the Fed and the Bank of Japan to their monetary policies. The Fed is expected to raise its interest rates at the upcoming December meeting, while the BoJ is likely to expand its QE programme to fight deflation in the country. Thus, at the recent meeting, it was decided to keep the current stance of monetary policy. The Regulator tends to continue increasing the money supply until inflation reaches the target level of 2%.
Support and resistance
Technical indicators recommend long positions. Nevertheless, the price is trading in the area of the support level of 122.38-122.19 the breakdown of which would lead to a decline towards 121.47.
Support levels: 122.20.
Resistance levels: 123.77.
Long positions can be opened from the level of 122.20 with the target at 124.00 and stop-loss at 122.00.