BOJ's Kuroda fails to move the needle on USD/JPY

Bank of Japan (BOJ) governor Kuroda reiterated his dovish stance while speaking in Parliament earlier today.
USD/JPY, however, has barely moved in response to Kuroda's comments on inflation and monetary policy.
The pair's immediate outlook will remain bullish as long as it is held above 111.82.

Omkar Godbole FXStreet Contributor

Bank of Japan Governor Kuroda, while speaking in Parliament earlier today, expressed willingness to ease more if the momentum toward the 2 percent inflation target is lost.

So far, however, Kuroda's dovish comments have failed to put a strong bid under USD/JPY. As of writing, the spot is trading in the red
just below 112.00, having hit a high and low of 112.05 and 111.89, respectively, earlier today.

BOJ's Governor also took note of the negative impact of the external sector and weak wage price inflation despite the labor market tightening. Even so, the markets are not willing to offer JPY, possibly because the bank has little room left to stimulate more, having run an unprecedented stimulus program for six years. For instance, the BOJ reportedly owns 77 percent of the total exchange-traded funds (ETF) market and further purchases may damage stock markets efficiency to allocate capital.

That said, the anti-risk JPY could drop during the day ahead, as technical studies are biased toward the USD bulls. The pair closed well above 111.82 on Friday, establishing a bullish higher high and validating the higher low of 110.84 created on April 10. As a result, the pair looks set to print fresh multi-month highs above 112.14. The bullish case would weaken if the spot finds acceptance under 111.82.

Technical Levels

USD/JPY

Overview
Today last price	111.98
Today Daily Change	-0.06
Today Daily Change %	-0.05
Today daily open	112.04

Trends
Daily SMA20	111.11
Daily SMA50	111.01
Daily SMA100	110.86
Daily SMA200	111.51

Levels
Previous Daily High	112.1
Previous Daily Low	111.88
Previous Weekly High	112.1
Previous Weekly Low	110.84
Previous Monthly High	112.14
Previous Monthly Low	109.71
Daily Fibonacci 38.2%	112.02
Daily Fibonacci 61.8%	111.97
Daily Pivot Point S1	111.92
Daily Pivot Point S2	111.79
Daily Pivot Point S3	111.7
Daily Pivot Point R1	112.13
Daily Pivot Point R2	112.22
Daily Pivot Point R3	112.34

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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