- Limited reaction seen in JPY after the Bank of Japan's steady policy decision was as markets expected.
- BoJ stood pat in a 7-2 vote and reaffirmed its yield curve control policy.
- The central bank maintained the wording "an annual pace of increase in the amount outstanding of its JGB holdings of about 80 trillion yen".
- USD/JPY initially fell to 111.00 levels, but has since pared losses to edge higher. The pair is currently trading at 11.22 levels.
- Governor Kuroda's press conference is now the focus (0630GMT). Kuroda is expected to maintain a cautious stance.
- US macro news which includes housing and consumer sentiment data will also influence the pair in the day ahead.
- Technical indicators for the pair support upside, we see scope for test of cloud base at 111.81.
- The pair is holding break above 200-DMA at 110.47 and 20-DMA at 110.70 on Thursday's trade.
Support levels - 111, 110.70 (20-DMA), 110.52 (200-DMA), 110.35 (5-DMA)
Resistance levels - 111.71 (June 2 high), 111.81 (cloud base), 112, 112.15 (38.2% Fib 118.662 to 108.130 fall)
Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-faces-stiff-resistance-at-11020-decisive-break-above-could-see-further-upside-758060).
Recommendation: Bias higher, place stops at 110.50, stay long for 111.70/ 111.80/ 112
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 75.055 (Neutral), while Hourly JPY Spot Index was at -126.828 (Bearish) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
