USD/JPY outlook: Rises towards 2023 high on dovish BOJ

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY bounced after BOJ policy decision, reversing Thursday’s loss and pressuring new 2023 high.

The Bank of Japan left its ultra-low interest rate unchanged, in line with expectations and kept its dovish stance in a forward guidance that put yen under fresh pressure.

Policymakers signaled they are so far not in rush to start tightening monetary policy and will continue to support economy until inflation, which is currently above BOJ’s target, returns to 2%.

The pair keeps full bullish stance, which was reinforced by the latest BOJ’s decision and remains on track for further gains, as recent talks about intervention also started to fade.

Rising daily Tenkan-sen (147.44) contained Thursday’s dip and continued to underpin the action, keeping near-term bias firmly with bulls for potential acceleration towards 150 target.

Daily Kijun-sen (146.45) and broken Fibo 76.4% (146.10) marks lower pivots, loss of which would sideline bulls and risk deeper correction.

Res: 148.45; 148.84; 149.70; 150.00.
Sup: 147.44; 147.01; 146.45; 146.10.

Interested in USD/JPY technicals? Check out the key levels

1. R3 149.4
2. R2 148.93
3. R1 148.26
PP 147.79
1. S1 147.12
2. S2 146.65
3. S3 145.98

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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