The USD/JPY pair continue its slow recovery from the 4-weeks low tested a few days ago, and seems to consolidate its positive movement while it remains on hold to receive fresh incentives from the Fed in order to boost its gains.
The cross finally gains the 101,00 level in the early London session with an upside move reaching the 101,25 level and at the time of writing moving sideways with a stable performance of 0.30%.
At this point the sell-off after the BOJ and Fed disappointment, has been half recovered, while the risk-sentiment remains poor.
We have to keep in mind that the new BOJ policy of acting on yields on the curve, seem to have introduced a significant change, trying something new which could be effective. The attempt, by the way, seems still shy remaining linked to the old method (acting on the quantity of asset purchased and the expansion of the monetary base).
With these prespectives the cross will continue to follow the market sentiment, with the price which could be influenced mainly by the US dollar and by the late-day events such as Manufacturing PMI, rig count and the Fed members Harker, Mester, Lockhart speech at Philly.
Taking a look at the chart, technical analysis suggests that the first resistance could be seen at 101,50 (psychological level), broken which the street could be free to reach the 101,82 level (50-DMA). In case the cross should revert his movement, on the other hand, the first significant support is seen @ 100,70 (4-weeks low).