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USD/JPY sees little action after BOJ maintained status quo

3/9/2018, 11:08:53 AMMarket Analysis
USD/JPY sees little action after BOJ maintained status quo

The Bank of Japan (BOJ) kept the interest unchanged as expected, stuck to its upbeat view on the economy and upgraded the assessment of overseas economies. Also, the central bank kept yield curve control target at zero percent. As per Reuters report, "the decision was made by an 8-1 vote with board member Goushi Kataoka dissenting on the view that the BOJ should speed up bond buying to further push down longer-term yields."

However. the USD/JPY is not impressed. The pair continues to trade at 106.70 - the level seen before the BOJ rate decision. As of writing, the upside is likely being capped due to BOJ's weak comments on housing investment.

The spot hit a high of 106.94 earlier today as fading North Korea risks triggered much-awaited correction in the overbought Japanese Yen.

Focus on Kuroda

BOJ governor Kuroda is likely to reiterate the necessity to keep the policy accommodative. The Japanese Yen may pick up bid if Kuroda talks about QQE taper.

USD/JPY Technical Levels

A break above 107.00 (psychological figure) would expose resistance at 107.68 (Feb. 27 high) and 107.91 (Feb. 21 high). On the downside, breach of support at 106.15 (session low) could yield a re-test of 105.55 (Feb. 16 low) and 105.25 (Mar. 3 low).