YEN SOLD AFTER BOJ BOND BUYING

The USDJPY pair has risen sharply in the Asian session, hitting a new weekly trading high of 113.83, as a targeted Bank of Japan bond-buying operation, weakened the Japanese currency across the board.

Rising Japanese yields prompted the BOJ to enter the market, pushing the 10-year JGB yield back to 0.085 percent. The Bank of Japan has tasked itself to control the yield curve, as part of the current monetary easing policy, offering to buy an unlimited amount of 10-year Japanese bonds.

The USDJPY pair remains bullish on all time frames, with the pair trading well above the calculated daily pivot point, at 113.13.

Resistance above the current daily price high is found at 114.10 and the May swing high at 114.31.

To the downside, technical support for the USDJPY pair is found at the M5 time frame 50 period moving average, at 113.50. Below 113.50 the H4 time frame, 20 period moving average offers further support, at 113.31.