USD/JPY testing 120 handle on BOJ’s status-quo
FXStreet (Mumbai) – The USD/JPY pair erased gains and switch into the negative territory in mid-Asia, following the release of Bank of Japan’s (BOJ) monetary policy statement, which showed that the central bank’s sits tight on the rope, leaving its monetary policy unchanged.
USD/JPY eases from 120.35 levels
Currently, the USD/JPY pair trades modestly flat at 120.19, quickly retreating from fresh session lows of 120.11 struck shortly after BOJ announcement. The major peeked into the red zone as the yen was bid after the BOJ kept policy steady and echoed the same old tune that the economy is recovering moderately and the QQE is having its intended effect while the longer-term inflation trend is rising.
However, the BOJ cut its outlook on exports while acknowledging downside risks emerging on the back of slowdown in emerging markets.
Later today, markets now await BOJ’s Governor Haruhiko Kuroda presser, where he would continue to reassure the public that inflation is on its way and that the economy is continuing to recover. While markets anticipate some fresh insights on the QQE program.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.65 (Today’s High) levels and above which it could extend 121.34 (Sept 10 High). To the downside immediate support might be located at 119.95 (Sept 10 Low) below that at 119.62 (Sept 3 Low).
The USD/JPY pair erased gains and switch into the negative territory in mid-Asia, following the release of Bank of Japan’s (BOJ) monetary policy statement, which showed that the central bank’s sits tight on the rope, leaving its monetary policy unchanged.
(Market News Provided by FXstreet)