USD/JPY on 113 handle consolidates central banks with a neutral bias

Currently, USD/JPY is trading at 113.37, up 0.04% on the day, having posted a daily high at 113.44 and low at 113.28. USD/JPY is flat in the Tokyo open and is consolidating the FOMC outcome and bearish result from the BoJ. 

Here are the main takeaways from the BoJ:

• BOJ keeps policy steady, economic assessment unchanged
• BOJ’s Kuroda: Prices are keeping momentum towards 2% but lacks strength
• BOJ’s Kuroda: Will continue with QQE and YCC as long as is needed to achieve 2% target

Meanwhile, the US 10yr treasury yields were partly retracing the post-FOMC decline, from 2.48% to 2.54% towards the close of the US session and the Fed fund futures are pricing in around a 60% chance of the next hike occurring in June. The dollar was soft and remains so. 

USD/JPY levels

USDJPY: Remained heavy

Technically, Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that selling interest contained advances around a horizontal 200 SMA, in the 113.50 region, while the 100 SMA stands above it, also lacking directional strength. "Indicators in the mentioned chart have bounced modestly from oversold readings, but are far from suggesting a change in the dominant trend. Renewed selling interest below the mentioned daily low should see the pair resuming its decline towards 112.00 a long term Fibonacci support."