USD/JPY: Cautious BoJ leaves monetary policy unchanged


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 1.09% against the JPY and closed at 113.43.

In the Asian session, at GMT0400, the pair is trading at 113.43, with the USD trading flat against the JPY from yesterday’s close.

Earlier in the session, the Bank of Japan (BoJ) opted to leave the benchmark interest rate steady at -0.1% and pledged to guide the 10-year government bond yield at around 0.0%. Also, the pace of annual asset purchases remained unchanged at about ¥80.0 trillion. The central bank further indicated that it will continue with quantitative and qualitative monetary easing with yield curve control, aiming to achieve the price stability target of 2.0%.

The pair is expected to find support at 112.75, and a fall through could take it to the next support level of 112.06. The pair is expected to find its first resistance at 114.50, and a rise through could take it to the next resistance level of 115.56.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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