USD/JPY tumbles to 3-week low at 101.00 level

Following the release of US economic data, the USD/JPY pair extended its sharp slide and has now plunged to 101.00 mark. 

The pair has been under intense selling pressure since last week, initially led by Fed statement, which was deemed dovish as market participants, and followed by BOJ disappointment and weaker US GDP reading. 

The selling pressure intensified on Tuesday as market seemed disappointed from the Japanese government's announcement of 28 trillion Yen of stimulus package. 

Adding to this, in-line with estimates US macro releases failed to provide any respite for the greenback, taking the pair to its lowest level in three weeks.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the short term picture is bearish, despite in the 1 hour chart, technical indicators have entered oversold territory. Still, the 100 and 200 SMAs have accelerated their declines well above the current level, supporting the ongoing bearish momentum. In the 4 hours chart, the 100 SMA keeps heading higher well above the current price and the 200 SMA, which limits the downside in the longer run, but the technical indicators have resumed their declines near oversold readings after a tepid upward correction, supporting the dominant bearish trend."