USDJPY Under Pressure On BoJ’s Optimism

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Forex - Bank of Japan -65984

The USDJPY came under pressure this early morning as the Bank of Japan left the monetary policy settings unchanged, holding rates at -10bps while maintaining 10yr JGB yield target at 0.00%.

The central bank has also made no changes to future guidance, adopted in July, which has pledged to keep interest rates too low for an extended period.

BoJ”s Optimism look including Fed’s dovish hike put the USDJPY under pressure this early morning, support by momentum indicators.

Immediate resistance comes at 112.85, support at 112.29 where a cut will aim 111.75. A halt is likely, it may test 112.29 before attempts to break below 111.75 level. Anyway, below 111.75 aims 111.33, further down, support comes at 110.75 level.

On the upside, the main resistance comes at 112.85 level, above that level sees recovery threats to 113.70 where another fall is likely.

Conclusion: The USDJPY sees downside threats below 112.85 levels…

Support: 111.75, 111.33, 110.75, 110.35

Resistance: 112.29, 112.85, 113.25, 113.70

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