USD/JPY turns a blind eye towards BOJ status quo
|USD/JPY barely moved after the Bank of Japan kept key policy tools unchanged, boosted the outlook for the Japanese economy and revised core inflation lower as expected.
Core CPI revised lower
The central bank revised its core CPI forecast for FY 2017/18 to 1.4% from the previous forecast of 1.5%. The GDP forecast for FY 2017/18 was revised higher to 1.6% from 1.5%.
The bank took note of the rise in exports, but warned that the long-term inflation expectations remain weak and the moves in the exchange rate and commodities pose both upside and downside risks to prices.
Overall, the policy statement and outlook offered little surprise to the markets. Consequently, we are not seeing any major action in the USD/JPY pair, which now is at the mercy of the overall market sentiment and US durable goods data due later today.
USD/JPY Technical Levels
The spot was last seen trading at 111.25 levels. A violation at the immediate hurdle of 111.78 (50-DMA) would signal extension of the rally from 108.13 (Apr 17 low) and open doors for 112.56 (Mar 17 low) and 113.37 (100-DMA).
On the downside, upward sloping 5-DMA level of 110.42 could offer support, which, if breached, would expose the 10-DMA level of 109.61. A daily close below the same would signal the rally from 108.13 has topped out and could yield further pull back to sub-108.87 (200-DMA) levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.