USD/JPY slides to 113.00 handle post-BoJ

The USD/JPY pair was seen consolidating overnight slump to two-week lows and is dropped the 113.00 handle. 

The pair had a muted reaction to BoJ's monetary policy decision. The central bank left interest rates unchanged and maintain 10-yr JGB yield target around 0%, while keeping its economic assessment unchanged as well.

The pair, however, maintained bearish bias in wake of Wednesday's Fed decision. The Fed, on expected lines, hiked interest rates by 25bps, but disappointed markets by not shifting rate hikes forecast for 2017. The so-called dot-plots signaled two additional rate-hikes this year, which was in-line with previous forecasts and triggered a broad based US Dollar sell-off. 

The pair now seems to have entered in a bearish consolidation phase and oscillated within 40-pips trading range. Traders now look forward to the BoE monetary policy decision, later during European session, which might infuse some volatility in the markets and derive the Japanese Yen's safe-haven appeal.

Later during the NA session, the US economic docket will also be looked upon for some short-term trading impetus. 

Technical levels to watch

Momentum below session low support near 113.15 level is likely to get extended towards 100-day SMA support near 112.90-85 region, which if broken decisively has the potential to continue dragging the pair further towards 112.20-15 strong support with some intermediate support near 112.40-35 region. 

On the flip side, any attempted recovery beyond 113.50-55 immediate resistance is likely to confront strong hurdle at 50-day SMA near 113.80 region, above which a fresh bout of short-covering is likely to lift the pair further towards 114.40-45 region.