USD/JPY holds above 105 after BOJ revises up economic assessment

  • BOJ's status quo rate decision fails to move the needle on USD/JPY. 
  • The central bank upgraded language on exports and output. 
  • Increased post-Fed dollar demand keeps USD/JPY above 105.00.

USD/JPY keeps gains above 105.00 as Bank of Japan's decision to revise the economic assessment higher is struggling to draw bids for the Japanese yen. 

The central bank said the economy is in a severe state but shows signs of life and could soon see higher output and exports. The statement added that consumption is gradually picking up; however, the consumer price index is likely to hover in the negative territory for the time being. 

The bank kept interest rates unchanged at -0.1% and retained the 10-year Japanese government bond yield target of around 0%. 

So far, the BOJ's positive comments on exports and output have failed to entice yen buyers. Moreover, the FX desks are paring dollar shorts on the not-so-dovish Federal Reserve policy statement released Wednesday. The US central bank kept rates unchanged but said the unemployment falling faster than the central bank expected in June.

As such, the dollar may continue to gain ground during the day ahead. Readers, however, should note that stocks have come under pressure following the Fed's statement. If the risk aversion worsens, the anti-risk Japanese yen may find bids, capping the upside in USD/JPY.

Technical levels


Today last price 105.05
Today Daily Change 0.09
Today Daily Change % 0.09
Today daily open 104.96
Daily SMA20 105.96
Daily SMA50 106.17
Daily SMA100 106.79
Daily SMA200 107.79
Previous Daily High 105.44
Previous Daily Low 104.8
Previous Weekly High 106.38
Previous Weekly Low 105.79
Previous Monthly High 107.05
Previous Monthly Low 105.1
Daily Fibonacci 38.2% 105.05
Daily Fibonacci 61.8% 105.2
Daily Pivot Point S1 104.69
Daily Pivot Point S2 104.42
Daily Pivot Point S3 104.05
Daily Pivot Point R1 105.33
Daily Pivot Point R2 105.71
Daily Pivot Point R3 105.97



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