USD/JPY remains bid after status quo BOJ

USD/JPY retains bullish bias after BOJ's status quo rate decision.
The central bank revised lower inflation forecasts.

Omkar Godbole FXStreet Contributor

USD/JPY remains on the hunt for 110.00 after the Bank of Japan (BOJ) kept key policy tools unchanged as expected.

The decision on maintaining yield curve targets was made by a 7-2 vote with board members Kataoka and Harada dissenting.

The central bank also revised lower the median core consumer price index (CPI) forecast for fiscal year 2019/20 to 0.9 percent from the forecast of 1.4 percent made in October.

The downward revision of inflation projections was expected and reinforces the consensus that the BOJ is unlikely to begin normalizing its accommodative policy anytime soon.

Put simply, BOJ policy outlook is biased toward the JPY bears.

As of writing, the USD/JPY pair is trading at 109.75. The bull flag breakout and the risk-on action in the S&P 500 futures favor a rally to the psychological hurdle of 110.00.

USD/JPY Technical Levels

USD/JPY

Overview:
    Today Last Price: 109.64
    Today Daily change: 0.23 pips
    Today Daily change %: 0.21%
    Today Daily Open: 109.41
Trends:
    Daily SMA20: 109.17
    Daily SMA50: 111.37
    Daily SMA100: 112.03
    Daily SMA200: 111.21
Levels:
    Previous Daily High: 109.7
    Previous Daily Low: 109.14
    Previous Weekly High: 109.9
    Previous Weekly Low: 107.99
    Previous Monthly High: 113.83
    Previous Monthly Low: 109.55
    Daily Fibonacci 38.2%: 109.36
    Daily Fibonacci 61.8%: 109.49
    Daily Pivot Point S1: 109.14
    Daily Pivot Point S2: 108.86
    Daily Pivot Point S3: 108.57
    Daily Pivot Point R1: 109.7
    Daily Pivot Point R2: 109.98
    Daily Pivot Point R3: 110.26

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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