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USD/JPY turns positive on BOJ’s status quo policy

USD/JPY turns positive on BOJ’s status quo policy

The Dollar-Yen pair rose turned positive and clocked a session high of 113.27 after the Bank of Japan (BOJ) maintained the status quo as widely expected.

The central bank kept the policy balance rate at -0.1 percent and retained yield target at around zero percent.

BOJ’s Kataoka opposed the decision on yield curve control and said the central bank should ease if the domestic factors lead to delay in hitting the price target. Meanwhile, the quarterly report took note of the downside risks to price pressures and the weak inflation expectations.

It said the inflation is likely to accelerate towards 2 percent, but mentioned that the underlying price pressures remain weak when the effect of energy prices is removed.

Overall, the policy decision and the quarterly report offered little surprises. Still, the Yen weakened somewhat, which could be due to the central bank’s comments on inflation.

USD/JPY Technical Levels

Jim Langlands from FX Charts writes-

“Below 113.00 would see us back in the previous 112/113 range, where 112.75 would be the first level of support ahead of 112.50. On the topside, back above 113.50 would find offers at 113.85 and again at 114.00although this does not look like being bothered today. If wrong, above 114.00, minor resistance will be seen at 114.20/25, above which 114.45/50 is an increasingly strong hurdle to overcome.”

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