USD/JPY hits session high as BOJ cut assessment on inflation, kept rates unchanged

Bank of Japan (BOJ) held key policy tools unchanged as expected, but cut assessment on inflation, underscoring the rising Fed-BOJ policy divergence.
Consequently, USD/JPY jumped to session highs, could extend gains further.

Omkar Godbole FXStreet Contributor

The USD/JPY clocked a session high of 110.80 after the Bank of Japan (BOJ) cut assessment on inflation, signaling that policymakers will be in no hurry to dial back the stimulus.

At press time, the currency pair is trading at 110.73.

BOJ's decision to offer a weaker view on inflation only highlights the rising divergence between the central bank and its global peers, namely the Fed and the ECB. The US central bank delivered a hawkish rate hike earlier this week and the ECB pulled the plug on its QE program/

Clearly, the JPY is on a weaker footing and hence USD/JPY could soon scale the weekly high of 110.85 in a convincing manner.

USD/JPY Technical Levels

Resistance: 110.85 (weekly high), 111.40 (recent high), 112.00 (psychological hurdle).

Support: 110.41 (5-day moving average), 110.20 (200-day moving average), 110.00 (psychological support).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	High
1H	Bearish	Neutral	Expanding
4H		Neutral	Shrinking
1D	Bullish	Overbought	Low
1W	Bearish	Neutral	Low
Updated Jun 15, 02:45 GMT

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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