FxWirePro: USD/JPY largely muted after BoJ held rates unchanged as expected, quarterly report offers little surprises

• USD/JPY edged higher after the Bank of Japan (BOJ) maintained status quo as widely expected.
   
• The GDP forecasts have been revised higher, while the inflation forecasts have been revised lower as expected.
   
• The pair hit session highs at 113.28 before slipping lower to currently trade largely unchanged at 113.16 levels.
   
• Technically, an inverted Head and Shoulders formation and bearish divergence on Stochastics which raises scope for downside.
   
• The pair is currently holding above 20-DMA at 112.90, break below would see further weakness.
   
• On the flipside, retrace above 5-DMA could see minor upside till 114.55 levels.

Support levels - 113.45 (1H 200-SMA), 112.91 (20-DMA), 112.76 (23.6% Fib retrace of 107.31 to 114.45 rally)

Resistance levels - 113.76 (5-DMA), 114, 114.45 (Oct 27 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Inverted-Head-and-Shoulders-pattern-and-bearish-divergence-raises-scope-for-downside-in-USD-JPY-976479) has hit TP1.

Recommendation: Book partial profits at lows. Bias lower, stay short for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -5.83029 (Neutral), while Hourly JPY Spot Index was at 140.484 (Bullish) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest