USD/JPY remains capped below 105.00 ahead of BOJ

The USD/JPY pair quickly recovered from daily lows, although struggles to take on the recovery above 5-DMA, as the bulls take a backseat heading into the BOJ policy decision due later this session.

USD/JPY awaits BOJ

The dollar-yen pair stalled its retreat from above 105 levels near 104.70 region, as the bulls snatched back control amid renewed demand seen for the greenback across the board, after sentiment received a boost from stronger Chinese manufacturing PMI reports.

Moreover, higher treasury yields across the horizon also lent a hand to the minor-recovery seen in the USD/JPY pair. However, the recovery appears capped, as markets refrain to create fresh positions ahead of the much-awaited BOJ monetary policy decision. The major is last seen exchanging hands at 104.82, almost unchanged on the day.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 105 (round figure). A break above the last, the major could test 105.23 (Oct 31 high) and 105.89 (Jul 26 high) beyond the last. While to the downside, the immediate support is seen at 104.67 (daily low) next at 104.49 (10-DMA) and below that at 104.16 (20-DMA).