USD/JPY to extend lower towards 104.20 – OCBC

The USD/JPY pair closed below the 105.00 recent range low, with the attention now shifted to 104.00/20, a level that should attract the pair in the upcoming sessions, according to Terence Wu from OCBC Bank.

Key quotes

“The BoJ kept its policy parameters unchanged in the latest meeting, and reinforced its commitment to the 2.0% inflation target.” 

“The USD/JPY closed below the 105.00 floor, leaving the pair open to further downward extension, with 104.20 being the first target.”

“A recovery above the 105.00 level may see the pair revert to a sideways posture again.”