22 May 2015
USD/JPY dips to lows below 121 as BOJ keeps rates on hold
FXStreet (Mumbai) - USD/JPY accelerates losses below 121 handle in the mid-Asian session, as the yen strengthened after Bank of Japan (BOJ) decided to keep rate steady at its monetary policy meeting today.
USD/JPY drops from 120.93
Currently, the USD/JPY pair trades lower by 0.20% at fresh session lows of 120.81, on ZBOJ’s status-quo. The yen strengthened against the American dollar this session after the BOJ left its monetary policy unchanged, keeping rates on hold and asset purchases intact at the annual pace of 80 trn yen.
Moreover, the BOJ statement delivered the rhetoric, that the Japanese economy is recovering at a moderate pace and the QQE is having its intended effects. It also reiterated that the central bank will continue its accommodative policy as long as it is necessary in a bid to achieve 2% inflation target.
Earlier this week, Japanese economy expanded in the Q1 2015, with preliminary growth figures showing an expansion of 0.6% in the March quarter, slightly above the average forecast of a 0.4% expansion, and 0.2 percentage points bigger than December-quarter growth. The Q1 GDP recovery may have provided further incentives to the BOJ to hold off policy shift today.
Meanwhile, markets now await BOJ Governor Kuroda’s comments at press conference due later in the session for further momentum.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121 levels and above which it could extend gains 121.20 (March 20 High) levels. To the downside immediate support might be located at 120.56 (May 19 Low) below that at 120 levels.
USD/JPY drops from 120.93
Currently, the USD/JPY pair trades lower by 0.20% at fresh session lows of 120.81, on ZBOJ’s status-quo. The yen strengthened against the American dollar this session after the BOJ left its monetary policy unchanged, keeping rates on hold and asset purchases intact at the annual pace of 80 trn yen.
Moreover, the BOJ statement delivered the rhetoric, that the Japanese economy is recovering at a moderate pace and the QQE is having its intended effects. It also reiterated that the central bank will continue its accommodative policy as long as it is necessary in a bid to achieve 2% inflation target.
Earlier this week, Japanese economy expanded in the Q1 2015, with preliminary growth figures showing an expansion of 0.6% in the March quarter, slightly above the average forecast of a 0.4% expansion, and 0.2 percentage points bigger than December-quarter growth. The Q1 GDP recovery may have provided further incentives to the BOJ to hold off policy shift today.
Meanwhile, markets now await BOJ Governor Kuroda’s comments at press conference due later in the session for further momentum.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121 levels and above which it could extend gains 121.20 (March 20 High) levels. To the downside immediate support might be located at 120.56 (May 19 Low) below that at 120 levels.