USD/JPY takes-out 117.50 on BOJ’s steady policy

The USD/JPY pair dropped to test 117 handle in a knee-jerk reaction to the BOJ’s unchanged monetary policy decision and upgradation of its economic assessment, although quickly recovered ground and climbed higher to hit fresh daily tops.

USD/JPY ignores brighter economic assessment

The yen failed to benefit from the BOJ’s latest upward revision to its economic assessment and now flirts with fresh daily lows versus its American counterpart, now pushing the USD/JPY pair towards the mid-point of 117 barrier.

The BOJ steady policy decision and upbeat economic assessment was widely priced-in by the markets, and hence, we witnessed a rally in USD/JPY post the BOJ announcement, as markets resorted to ‘sell the fact’ strategy and sold-off the yen.

At its decision today, the BOJ kept the interest rates unchanged at -0.1%, as expected and maintained current yield curve control policy. Markets now look forward to the BOJ Kuroda’s presser for further take on the spot.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.68 (5-DMA). A break above the last, the major could test 118 (round figure) and 118.67 (10-month highs) beyond the last. While to the downside, the immediate support is seen at 117 (zero figure) next at 116.65 (10-DMA) and below that at 116.48 (100-DMA).