USD/JPY is reluctant to low the 113 handle and is reversing the bearish drift on the short term sticks in the Tokyo open.

The major unit has been forced lower after the BoJ announcements yesterday and the subsequent bid in the Yen across the board. However, the pair managed to recover some ground in the American afternoon, struggling around the 113.00 level by the end of the session.

BoJ on hold…for now…

While the BoJ decided left the benchmark interest rate on hold at -0.1% along with the annual purchases of financial assets at ¥80tn a year, markets will remain on guard due to Governor Kuroda’s presser, when he said that more asset purchases and adjustments to its negative rate remain on the table in respect of them reaching their inflation target of 2.0%.

For the day ahead, Asia is awaiting the FOMC. For live coverage of the key event, you can tune in here with FXStreet.

USD/JPY levels

The general picture is neutral within the broad 112.00/114.55 range and price action is likely to remain choppy within that range as the price is basing on the longer term sticks from recent lows of 110.97 on Feb 10th with a tight range around the 20 dma at 113.20 today below the pivot of 113.76 and R1 at 114.06 and S3 at 113.03.

USD/JPY is reluctant to low the 113 handle and is reversing the bearish drift on the short term sticks in the Tokyo open.

(Market News Provided by FXstreet)

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By FXOpen