USD/JPY reverses half the BOJ-led rally, Fed eyed

The USD/JPY pair is seen extending the retreat from post-BOJ highs, and slips back below 102 handle, as the yen recovered ground somewhat following Kuroda’s presser.

USD/JPY awaits Fed

The Japanese yen is seen recovering losses against the American dollar in the European session, now pushing USD/JPY back below 102 barrier, as dust settles over the BOJ aftermath, while awaiting fresh impetus from the Fed outcome due later in the NA session.

While JPY bulls also found support from optimistic comments from BOJ Governor Kuroda, as he noted that Japan is out of deflationary pressure and CPI may hit the 2% price target in FY 2017.   At the time of writing the major trades +0.08% higher at 101.78, extending further below 102 handle.

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 101.46 (daily R1) and below that at 101.08 (four-week lows).