USD/JPY bulls pause below 108.00 on BOJ’s status-quo


  • USD/JPY drops after BOJ’s emergency meeting.
  • BOJ cited virus outbreak fears, shows readiness to act.
  • US-China tussle intensifies with latest statements from National People's Congress.

USD/JPY drops from 107.72 to 107.60 after the BOJ’s inaction during the early Friday. The Japanese central bank left monetary policy unchanged during the surprise meeting while announcing targeted aids for the small and mid-sized firms.

The BOJ meeting wide market expectations of no change in the short-term interest rate or the Japanese Government Bond (JGB) yield target while announcing 75 trillion loans to combat the coronavirus (COVID-19).

Read: Breaking: BoJ maintains short-term interest rate target at -0.1%

Other than the BOJ, the recently worrisome headlines from China’s 13th National People's Congress  (NPC) concerning Hong Kong also weigh on the market’s risk-tone. 

Earlier during the day, the US Senate Majority Leader McConnell said that further China crackdown on Hong Kong will intensify the Senate’s interest in re-examining the US-China relationship.

Further to note that the NPC stopped offering any target for the next year's GDP while pleding to implement the US trade deal.

That said, the US 10-year treasury yields remain soft near 0.675% whereas Japan’s NIKKEI drop 0.18% to 20,510 by the press time.

Considering the lack of major data on the econmic calendar, traders may now keep eyes on the updates from China for fresh impulse.

Technical analysis

An ascending trend line from May 07, at 107.55 now, can check sellers during the further declines while highs marked during mid-April and May 19, around 108.10, become the key resistance.

Additional important levels

Overview
Today last price 107.72
Today Daily Change 0.11
Today Daily Change % 0.10%
Today daily open 107.61
 
Trends
Daily SMA20 107.05
Daily SMA50 107.9
Daily SMA100 108.44
Daily SMA200 108.31
 
Levels
Previous Daily High 107.85
Previous Daily Low 107.49
Previous Weekly High 107.77
Previous Weekly Low 106.5
Previous Monthly High 109.38
Previous Monthly Low 106.36
Daily Fibonacci 38.2% 107.71
Daily Fibonacci 61.8% 107.63
Daily Pivot Point S1 107.45
Daily Pivot Point S2 107.29
Daily Pivot Point S3 107.08
Daily Pivot Point R1 107.81
Daily Pivot Point R2 108.01
Daily Pivot Point R3 108.17

 

 

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