This morning, Bank of Japan Governor Kuroda declared he will not hesitate to take additional easing measures if necessary. He added he will keep current low rates, or even cut them, as he keeps eye on pandemic crisis.
From a technical point of view, on an intraday chart, USD/JPY is capped by a declining trend line. Readers may therefore consider the potential for further weakness as the nearest support would be set at May 13 bottom at 106.70 and a second one would be set at horizontal support at 106.55 in extension. Any break above 107.10 would lower the bullish potential and would lead to a rise towards 107.25.
Source: TradingView, GAIN Capital
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