FxWirePro: USD/JPY resumes upside post BoJ policy decision, outlook remains bullish

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 0.53% higher on the day at 119.21 at around 14:00 GMT

Previous Week's High/ Low: 117.35/ 114.81

Previous Session's High/ Low: 119.02/ 118.36

Fundamental Overview:

The Bank of Japan (BoJ) stuck to its ultra-accommodative policy stance and downgraded its economic assessment at its policy meet on Friday.

The BoJ warned of a very high uncertainty over the economic fallout from the Ukraine crisis and signaled to keep its monetary policy ultra-loose for the time being. 

In the post-meeting press conference, Governor Haruhiko Kuroda reiterated that the BoJ will ease further without hesitation as needed.

On the other side, the Fed’s more hawkish outlook underpinned the USD and supports prospects for additional gains.

Technical Analysis:

- USD/JPY resumes upside after a brief pause on Thursday's trade

- Price action is holding support at 5-DMA which is biased higher

- Momentum is bullish, Chikou span is biased higher

- GMMA indicator shows major and minor trend are bullish and volatility is high 

Major Support and Resistance Levels:

Support - 118.53 (5-DMA), Resistance - 121.48 (Feb 2016 high)

Summary: USD/JPY extends gains above 119 handle, scope for test of 121 levels.