USD/JPY retreats to 102.20 on BOJ’s Kuroda

The buying interest behind the USD/JPY pair appears to have waned, now sending the rate back towards 102 handle amid ongoing headlines from BOJ’s Kuroda, as he speaks at the central bank’s press conference.

USD/JPY offered above 20-DMA

The dollar-yen pair stalled its bullish momentum and now recedes a part of the BOJ-led rally to 102.78 levels, as investors digest the comments from the BOJ Governor Kuroda at the presser.

Earlier on the day, the BOJ made no changes to its interest rates, ETF purchases amount and bond-buying programme, while adopting new policy measures to control the yield curve along with QE and getting back to the target of 0% in 10yr bond yield. The latest measure pushed the 10-year Japanese yields higher and hence, triggered a fresh rally in the US treasury yields, which in turn pulled the US dollar higher.

Also, the bank’s decision sent the financial and banking stocks on the Japanese indices through the roof, boosting USD/JPY flows further. However, BOJ’s clever thinking is not going to give last results and hence, results in the renewed weakness behind USD/JPY. At the time of writing the major trades +0.56% higher at 102.23, deflating from five-day tops printed at 102.78.

With the BOJ out of the way, focus now shifts towards the Fed rate decisions, which will equally spur massive volatility into the markets.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 103 (round figure). A break above the last, the major could test 103.36 (Sept 14 high). While to the downside, the immediate support is seen at 102.00 (round figure) and below that at 101.08 (four-week lows).