FX.co ★ USD/JPY: Under pressure

Overview:
USD/JPY is consolidating in lower range after hitting one-month low of 92.57 on Tuesday. The rate is underpinned by expectations that Bank of Japan will increase its asset-purchase program and extend the maturities of the bonds it buys at Thursday's monetary policy decision; improved USD sentiment as U.S factory orders rose 3% in February and U.S. IBD/TIPP Economic Optimism Index improved to 46.2 in April from 42.2 in March; demand from Japan importers. But expectations of more aggressive easing from BOJ tempered by PM Abe's comment that he is not demanding Japan's central bank "act recklessly" to achieve its target of 2% inflation in two years. USD/JPY gains are also limited by Japan exporter sales. Daily chart is mixed as five- and 15-day moving averages are declining; MACD and stochastics are bearish, but latter is at oversold; bullish hammer candlestick pattern was completed on Tuesday.

Recommendation:
Sell below 93.65 with downside targets at 92.57 and 92.23.
Support levels:
S1 - 92.57 (Tuesday's low)
S2 - 92.3
S3 - 92.01 (Feb. 28 low)
Alternative scenario:
Buy above 93.65 with upside targets at 93.85 and 94.4.
Resistance levels:
R1 - 93.8
R2 - 94.38 (Monday's high)
R3 - 94.91-94.97 band (March 27 high-March 25 high)