USD/JPY little changed around 121.45 on a non-event BOJ

FXStreet (Mumbai) - USD/JPY steadied in the mid-Asian session, unperturbed by Bank of Japan’s (BOJ) unchanged monetary policy outlook, keeping their asset purchases program intact at annual pace of 80 trln yen.

USD/JPY unmoved by BOJ

Currently, the USD/JPY traded modestly flat at 121.45, inching close to session highs at 121.52 levels. USD/JPY remained little affect by a BOJ’s ‘wait and watch’ stance, echoing same from the last meeting that economy continues to recover moderately as a trend. BOJ forecasted consumer inflation to be zero pct for time being.

The yen is expected to trade cautiously against the US dollar and may test 122 handle ahead of Wednesday’s FOMC decision which is widely expected to come out less than dovish, hinting at the timing of Fed rate-hike.
Meanwhile, traders await key economic releases in the US due later in the day for major impact on the pair.

USD/JPY Technical Levels

To the upside, the next resistance is located at 121.67 (March 12 High)) levels and above which it could extend gains 122.03 (March 10 High) levels. To the downside immediate support might be located at 121 levels, below that at 120.24 (20-DMA) levels.

BoJ keeps policy steady

The Bank of Japan has concluded its two day monetary policy meeting, with the Central Bank keeping monetary policy steady, pledging to increase monetary base at annual pace of 80 trln yen.
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