19 Jun 2015
USD/JPY dips to 122.87, back at 123 as BOJ stands pat
FXStreet (Mumbai) - USD/JPY witnessed a brief dip to 122.87 lows immediately after the Bank of Japan (BOJ) unchanged monetary policy decision, although the yen quickly gave back gains and trades muted around 123 handle as the policy brought no surprises as widely anticipated.
BOJ – a non-event
Currently, the USD/JPY pair trades muted at 123, retreating from session lows of 122.87 reached some minutes ago. The USD/JPY pair dipped to lows and swung back higher to 123 barrier in a knee-jerk reaction to BOJ’s monetary policy decision. The Japanese central bank kept the monetary policy unchanged, maintaining the asset purchase program at 80 trln yen.
The major regained 123 handle as the yen reversed the brief spike to the upside as markets evaluate the status quo stance by the BOJ. BOJ statement reiterated that Japan's economy continues to recover moderately and the price trends is seen increasing in a longer-term perspective.
Meanwhile, markets now await BOJ’s Governor Kuroda’s comments at the BOJ presser on the exchange rate, especially after his recent remarks on the yen, which caused nearly 200 pips stir in USD/JPY which pulled back the Japanese currency from 13-yr slump.
USD/JPY Technical Levels
To the upside, the next resistance is located at 123.58 (June 18 High) levels and above which it could extend gains 123.79 (June 16 High) levels. To the downside immediate support might be located at 122.49 (June 18 Low) below that at 122 levels.
BOJ – a non-event
Currently, the USD/JPY pair trades muted at 123, retreating from session lows of 122.87 reached some minutes ago. The USD/JPY pair dipped to lows and swung back higher to 123 barrier in a knee-jerk reaction to BOJ’s monetary policy decision. The Japanese central bank kept the monetary policy unchanged, maintaining the asset purchase program at 80 trln yen.
The major regained 123 handle as the yen reversed the brief spike to the upside as markets evaluate the status quo stance by the BOJ. BOJ statement reiterated that Japan's economy continues to recover moderately and the price trends is seen increasing in a longer-term perspective.
Meanwhile, markets now await BOJ’s Governor Kuroda’s comments at the BOJ presser on the exchange rate, especially after his recent remarks on the yen, which caused nearly 200 pips stir in USD/JPY which pulled back the Japanese currency from 13-yr slump.
USD/JPY Technical Levels
To the upside, the next resistance is located at 123.58 (June 18 High) levels and above which it could extend gains 123.79 (June 16 High) levels. To the downside immediate support might be located at 122.49 (June 18 Low) below that at 122 levels.