30 Apr 2015
USD/JPY drops to 118.60 as BOJ leaves policy untouched
FXStreet (Mumbai) - The yen strengthened versus the US dollar in the mid-Asian session, knocking-off USD/JPY to fresh session lows at 118.61, after Bank of Japan’s (BOJ) monetary policy statement brought no new surprises with the central bank leaving its policy unchanged.
USD/JPY drops from 118.96 post BOJ
Currently, the USD/JPY pair trades lower by -0.25% at 118.73, quickly retracing from fresh session lows reached at 118.61 shortly after BOJ announcement. The USD/JPY pair slipped further below 119 handle after BOJ board members decided to keep the monetary policy steady and pledged to increase monetary base at annual pace of 80 trln Yen.
However, one of the BOJ board members Kiuchi proposed tapering annual JGB purchases to 45 trln Yen, which was turned down by majority vote. The policy statement was a complete non-event reiterating the same, economy continues to recover at moderate pace with no mention on inflation expectations and no hints on further easing measures which was widely anticiapated.
Meanwhile, markets now turn their attention towards BOJ Governor Kuroda’s speech at BOJ press conference due out shortly for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.20 (100-DMA) levels and above which it could extend gains 119.52 (20-DMA) levels. To the downside immediate support might be located at 118.51 (April 20 Low) below that at 118.30 (March 26 Low) levels.
USD/JPY drops from 118.96 post BOJ
Currently, the USD/JPY pair trades lower by -0.25% at 118.73, quickly retracing from fresh session lows reached at 118.61 shortly after BOJ announcement. The USD/JPY pair slipped further below 119 handle after BOJ board members decided to keep the monetary policy steady and pledged to increase monetary base at annual pace of 80 trln Yen.
However, one of the BOJ board members Kiuchi proposed tapering annual JGB purchases to 45 trln Yen, which was turned down by majority vote. The policy statement was a complete non-event reiterating the same, economy continues to recover at moderate pace with no mention on inflation expectations and no hints on further easing measures which was widely anticiapated.
Meanwhile, markets now turn their attention towards BOJ Governor Kuroda’s speech at BOJ press conference due out shortly for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.20 (100-DMA) levels and above which it could extend gains 119.52 (20-DMA) levels. To the downside immediate support might be located at 118.51 (April 20 Low) below that at 118.30 (March 26 Low) levels.