USD/JPY: 25-pip range play continues after Kuroda's comments

USD/JPY lacks a clear directional bias, with the US 10-year yield sidelined at 1.08%.
BOJ's Governor Kuroda said inflation could remain low for the time being.

Omkar Godbole FXStreet Contributor

USD/JPY remains locked in a narrow range of 103.75 to 104.00 for the 14th straight hour, with the Bank of Japan (BOJ) Governor Kuroda offering mixed views on the Japanese economy.

"Japan's economy picking up although in the severe state due to impact from coronavirus pandemic," Kuroda said while speaking at a meeting of branch managers.

Kuroda added that consumer prices could fall for the time being and gradually accelerate and expressed willingness to provide more easing if needed. So far, Kuroda's comments have failed to move the pair out of its multi-hour trading range of 103.75 to 104.00.

The pair's recovery from the Jan. 6 low of 102.59 ran out of steam above 104.00 on Monday after the US 10-year Treasury yield's ascent stalled at the 10-month high of 1.18%. The yield has retreated to 1.08% since then, weakening the bid tone around the US dollar.

The US President-elect Joe Biden is expected to announce additional fiscal stimulus on Thursday. That could revive the rally in both the yields and USD/JPY.

Technical levels

USD/JPY

Overview
Today last price	103.85
Today Daily Change	-0.03
Today Daily Change %	-0.03
Today daily open	103.88

Trends
Daily SMA20	103.5
Daily SMA50	103.95
Daily SMA100	104.67
Daily SMA200	105.86

Levels
Previous Daily High	104
Previous Daily Low	103.53
Previous Weekly High	104.09
Previous Weekly Low	102.59
Previous Monthly High	104.75
Previous Monthly Low	102.88
Daily Fibonacci 38.2%	103.82
Daily Fibonacci 61.8%	103.71
Daily Pivot Point S1	103.6
Daily Pivot Point S2	103.33
Daily Pivot Point S3	103.14
Daily Pivot Point R1	104.07
Daily Pivot Point R2	104.27
Daily Pivot Point R3	104.54

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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