After witnessing wild swings over the last hour, the yen finally regains control and inches higher against the US dollar after the BOJ kept policy steady at its policy meeting today.
All eyes on BOJ Kuroda’s presser
The dollar-yen pair’s fades a knee-jerk spike to 114.14 levels and drops sharply as the yen regained momentum after the BOJ policy decision turned out surprisingly hawkish, with the central bank keeping rates unchanged at -0.1%, while removing language from its statement that it ‘will cut interest rates further into negative territory if judged necessary.’ At the time of writing, USD/JPY trades at 113.63, hovering near session lows reached at 113.53, recording a -0.18% loss on the day.
More so the voting composition also showed a change from 5-4 dissents for negative rates policy to 7-2, while the vote on more asset purchases was 8-1. Further, the central bank sounded upbeat on the economic prospects, citing ‘economy continues to recover moderately as a trend.’
Focus now remains on the BOJ Governor Kuroda’s presser for more clues on today’s policy outcome, while markets continue to assess the policy decision announced by the BOJ.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 114 (daily high/ psychological levels). A break above the last, the major could test 114.45/62 (Mar 10 High/ daily R3). While to the downside, the immediate support is seen at 113.46 (1h 200-SMA) and below that at 113.30/00 (20-DMA/ round number).
(Market News Provided by FXstreet)
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