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USD/JPY: Yen jumps 50-pips in knee-jerk on BOJ’s status-quo

FXStreet (Mumbai) - USD/JPY witnessed a downward spike to 120.30, although quickly retraced from lows towards 120.65 region, as the JPY bulls were boosted after the BOJ left its monetary policy settings unchanged at its latest policy decision announced last minutes.

USD/JPY drops from 120.90 levels

Currently, the USD/JPY pair drops -0.44% to 120.62, retreating from fresh session lows struck at 120.34 post BOJ announcement. The USD/JPY pair dropped nearly 50-pips in a knee-jerk reaction after the Japan’s central bank decided to sit tight on its policy decision, squashing widespread expectations of further easing at today’s meeting.

The BOJ kept the monetary policy decision intact and continued with its pledge to increase monetary base at annual pace Of 80 trln yen. While the voting composition was maintained at 8-1.

Meanwhile, markets will continue to digest the latest policy decision while shifting attention towards the BOJ Semi-Annual Outlook followed by Governor Kuroda’s press conference for further insights on the BOJ move.

USD/JPY Technical levels to watch

The prices remain capped below 121 barrier, above which the pair cold find the immediate hurdle near 121.50 (Oct 23, 26 High + 200-DMA confluence) and from there to 121.62/73 (100-DMA + Aug 28 High). To the downside, the immediate support in sight is located at 120.23/21 (Oct 28 & 23 Low), below which 120 (round number) would be tested.

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