USD/JPY keeps losses after status quo BOJ rate decision
- BOJ kept key policy tools unchanged, offered little surprises, leaving USD/JPY unchanged.
- The pair is closely following the developments in the equity markets following Wednesday's Fed rate cut.
Bank of Japan (BOJ) kept key policy tools unchanged, as expected, leaving the USD/JPY pair at the mercy of the broader market sentiment.
As of writing, the currency pair is trading at 108.09, representing 0.28% losses on the day, having hit a low of 108.00 immediately after the BOJ published its rate decision.
The central bank kept the interest rates unchanged at 0.10% as expected and retained the pledge to keep the 10-year government bond yield around 0.0%.
The central bank also reiterated that extremely low rates will remain for a prolonged period, at least through the spring of 2020 and expressed readiness to add more stimulus if required.
All-in-all, the policy statement offered no hawkish/dovish surprises. The pair, therefore, hasn't moved much in the last few minutes and will likely continue tracking the action in the equity markets during the day ahead.
As of writing, the futures on the S&P 500 are reporting marginal losses, which explains the uptick in the Japanese Yen.
The Federal Reserve on Wednesday cut rates by 25 basis points, as expected, however, the 7-3 vote split suggested that most Fed officials still see a rebound in economic growth as their base case scenario.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
