USD/JPY: bears eyeing below the 100 psychological handle

USD/JPY has been losing ground as the Yen picks up the pace across the boar din a risk off environment and a lul on the commodities sector driven by lower oil despite the US dollar tanking. 

At the same time, Japan's government approved a ¥28 trillion stimulus package in another attempt to boost the economic growth and fight deflation but markets were disappointed with that outcome. 

Valeria Bednarik, chief analyst at FXstreet explained,  "With the pair having extended well below the 61.8% retracement of its latest rally, speculative interest is now targeting 99.98, July 8th low, although with a cautious stance, as nobody knows how the BOJ will react to the pair breaking through 100.00."

USD/JPY levels 

Spot is presently trading at 101.19, and next resistance can be seen at 101.26 (Daily High), 101.31 (Daily Classic S3), 101.32 (Hourly 20 EMA), 101.66 (Daily Classic S2) and 102.02 (Daily Classic S1). Next support to the downside can be found at 100.90 (Daily Open), 100.90 (Weekly Low), 100.86 (Daily Low), 100.68 (Yesterday's Low) and 100.53 (Monthly Low).

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the RSI heads lower around 22, while the Momentum indicator diverges modestly higher within negative territory, rather reflecting price's pause than suggesting an upward move.