USD/JPY bears eye 112.00-111.59 region

Currently, USD/JPY is trading at 113.30, down -0.08% on the day, having posted a daily high at 113.58 and low at 112.91.

FOMC did not flag any plan to accelerate the pace of monetary tightening - RTRS

USD/JPY has been stuck in a range following the Fed and BoJ announcement after the dollar lost ground across the board and USD/JPY fell from 11.480 down to 112.88 lows. After the Fed's less than hawkish outcome, focus turned to the BoJ that too was a bearish outcome their domestic currency.

BOJ keeps policy steady, economic assessment unchanged

"The BoJ left its policy rate (-10bpts), 10Y yield target (0%), and asset purchase pace (80trn) unchanged. Gov. Kuroda maintained a dovish tone throughout his press conference as he highlighted a lack of momentum in reaching the price stability target and underscored that growth risks were ‘tilted to the downside’," explained analysts at Scotiabank, adding, " Kuroda also hinted to the risk of further rate cuts ‘if needed’. The outlook for relative central bank policy remains bearish for JPY, with both 2Y and 10Y yields spreads hovering just below their recent multi-year highs and set to widen further throughout 2017."

USD/JPY levels

USD/JPY failed at 115.62 as the mid-January high. With the drop yesterday, bears are eyeing the 112.00-111.59 region that guards the deeper Fibonacci support at 109.92. The key psychological target in the wide is the 200-day ma at 108.03. Similarly, on the wide, the upside psychological target beyond recent aforementioned Jan highs is 118.60.