USD/JPY chart - Trading View
USD/JPY trades shy of 109 handle at 108.99 at around 04:15 GMT, up 0.12% at the time of writing.
Focus now on the Bank of Japan (BOJ) monetary policy meeting concluding on Friday for impetus.
The BoJ is expected to slightly widen its long-term interest rates band, in order to allow the rates to move around the 0% target, the Japanese daily reported.
According to report, the central bank is also likely to remove a pledge to buy exchange-traded funds (ETF) at an annual pace of JPY6 trillion ($55 billion).
USD/JPY saw whiplash around 200H MA in a knee-jerk reaction to the report. Fed-led weakness seems to have stalled.
On Wednesday, Fed policymakers opted to maintain the current policy setting, reiterating their commitment to accommodative monetary policy.
The U.S. dollar fell across the board as markets absorbed the Fed’s commitment to a dovish monetary policy.
Technical bias is bullish, 'Golden Cross' (bullish 50-DMA crossover on 200-DMA) keeps scope for gains.
However, the pair is struggling at stiff resistance at 200W MA at 108.98. Decisive break above required for further gains.
Price action is hovering around 200H MA, breach below will see more weakness. 21-EMA is major support at 107.66.
