FxWirePro: USD/JPY extends range trade, yen comatose after BOJ keeps key policy tools unchanged

USD/JPY chart - Trading View 

USD/JPY was extending range trade for the second straight session, bias neutral.

Yen largely unchanged after BoJ kept key policy tools unchanged at its policy meet as widely expected.

That said, the central bank's dismal economic forecasts may add to bearish pressures around the Yen.

The BOJ retained the 10-year government bond yield target at 0.00% and kept the policy balance rate unchanged at -0.10%.

However, the central bank said that the Japanese economy is in an extremely severe situation and could contract by 4.7% in the financial year 2020. 

In addition, the central bank expects the core consumer price index to decline to -0.5% in 2020.

Technical indicators do not show a clear directional bias. Volatility is also low hence preventing major price movements.

Major Support Levels: 

S1: 107.17 (5-DMA)

S2: 107 (Psychological mark)

S3: 106.61 (Lower BB)

Major Resistance Levels: 

R1: 107.32 (converged 21-EMA and 200H MA)

R2: 107.48 (55-EMA)

R3: 107.77 (110-EMA)

Summary: Yen comatose after BoJ keeps policy unchanged. Directional bias unclear. Range trade likely to continue.