The USD/JPY pair slumped fresh weekly lows below 109 handle after the BOJ disappointed by markets big time by keeping its monetary policy setting unadjusted.
USD/JPY sees a 200-pips fall
The yen jolted nearly 200-pips higher versus the American dollar in a knee-jerk reaction to the BOJ policy announcement, as the central bank keeps monetary policy steady, maintains 80 trln Yen base money target and 0.1% negative interest rate. USD/JPY plunged to fresh one-week lows of 108.78 immediately after the BOJ decision, before recovering some ground to now trade around 109.25, still down –2.03% on the day.
Markets now assess the BOJ policy statement and await BOJ Chief Kuroda’s presser for more insights on today’s monetary policy stance.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 110 (round number). A break above the last, the major could test 110.41/50 (daily S2/ psychological levels). While to the downside, the immediate support is seen at 108.78 (post-BOJ low) and below that at 107.81 (Apr 18 Low).
Reference: FXStreet
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