USD/JPY is losing height at snail’s pace following Kuroda’s comments

Dollar-Yen has shed 15 pips and is eyeing further losses after Bank of Japan (BOJ) governor Kuroda played down the necessity to tweak monetary policy in the short-term.

Rejected at 104.69

The pair was rejected at 104.69, but the offered tone around the pair gathered pace after Kuroda said the bank does not see immediate need to change short, long-term rate target levels. He added further that the yield curve is behaving the way the central bank considers desirable.

The comments reduced the probability of more easing next week. The expectations were low, nevertheless, Kuroda’s comments appear to have taken the wind out of dollar bulls. At the time of writing, the pair was trading at the session low of 104.40.

USD/JPY Technical Levels

Breach of support at 104.22 (5-DMA) would open doors for 104.00 (10-DMA), under which losses could be extended to 103.61 (Oct 14 low). On the higher side, breach of session high of 104.69 could yield a move to 105.00 (zero figure) beyond which resistance at 105.61 (July 29 high) stands exposed.