USD/JPY comatose below 102.00, eyes BOJ policy revamp

Dollar-Yen is going nowhere in Asia, trading largely comatose below 102.00 levels despite reports the Bank of Japan (BOJ) is likely to consider easing even though there is limited ammunition left with the bank.

Focus on Negative rates

As per the Asian Nikkei Review article, the BOJ plans to put deeper negative rates at the center of future stimulus expansions. However, that also means the bank would be under pressure to steepen the yield curve in order to help commercial banks and pension funds.

It is also being reported that central bank will look into scrapping the two-year time frame for achieving 2% inflation. Whichever way it goes, the BOJ event is likely to overshadow the Fed.

USD/JPY Technical Levels

The pair was last seen trading around 101.80 levels. Breach of 101.52 (Pivot S1) could yield 101.20 (Sep 7 low) and 101.00 (zero figure). On the higher side, a move back above 102.00 would open doors for a re-test of 102.36 (Pivot R1) and 103.05 (Sep 9 high).