USD/JPY pops as BOJ boosts bond purchases

The Japanese Yen is being offered after the Bank of Japan (BoJ) boosted the Japanese Government Bond (JGBs) purchases in order to keep the 10-year yield around zero percent. The USD/JPY pair rose to a session high of 113.55. 

Bullish 50-DMA & 200-DMA crossover

The daily chart shows bullish 50-DMA & 200-DMA crossover. The uptick seen today is pretty much in line with the pattern - three days of sideways actions followed by an upside breakout - seen since the third week of June. 

BoJ was expected to boost bond purchases as the global bond sell-off pushed the 10-year JGB yield to its highest level since late January. 

USD/JPY Technical Levels

The spot was last seen trading around 113.50 levels. A break above 113.69 (July 5 high) would open up upside towards 113.85 (May 15 high) and 114.37 (May 10 high). On the other hand, a breakdown of support at 113.33 (5-DMA) could yield a pullback to 112.73 (July 4 low) and 112.20 (Mar 31 high).