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USD/JPY unmoved by the status quo BOJ

  • USD/JPY has barely moved after the BOJ rate decision, remains flatlined above the crucial 100-day MA support.
  • The Bank of Japan (BOJ) kept key policy tools unchanged as expected.
  • Potential risk aversion could push the pair below the 100-day MA.

The USD/JPY is barely moving after the Bank of Japan's (BOJ) status quo announcement.

The Japanese central bank offered little hawkish or dovish surprises by keeping its short-term rate target at minus 0.1 percent and the 10-year yield target around zero percent under a policy dubbed yield curve control (YCC).

Moreover, the BOJ is stuck between the rock and a hard place - maintaining current stimulus is proving costly, however, there is limited scope for policy normalization amid signs of global economic slowdown and ahead of next year's consumption tax hike.

With BOJ out of the way, the focus shifts to the US treasury yields and the sentiment in the equity markets. The Fed raised interest rates by 25 basis points yesterday as expected, but signaled that it could hike rates two times in 2019.

Despite the hawkish Fed, the 10-year yield remains near the seven-month low of 2.76 percent. The pair, therefore, could beat the crucial 100-day MA support of 112.41 if the equities trade risk-averse. The S&P 500 futures, which were up 0.30 percent in early Asia, are now reporting marginal losses.

USD/JPY Technical Levels

USD/JPY

Overview:
    Today Last Price: 112.48
    Today Daily change: -11 pips
    Today Daily change %: -0.0977%
    Today Daily Open: 112.59
Trends:
    Previous Daily SMA20: 113.18
    Previous Daily SMA50: 112.99
    Previous Daily SMA100: 112.41
    Previous Daily SMA200: 110.85
Levels:
    Previous Daily High: 112.64
    Previous Daily Low: 112.09
    Previous Weekly High: 113.71
    Previous Weekly Low: 112.24
    Previous Monthly High: 114.25
    Previous Monthly Low: 112.3
    Previous Daily Fibonacci 38.2%: 112.43
    Previous Daily Fibonacci 61.8%: 112.3
    Previous Daily Pivot Point S1: 112.24
    Previous Daily Pivot Point S2: 111.88
    Previous Daily Pivot Point S3: 111.68
    Previous Daily Pivot Point R1: 112.8
    Previous Daily Pivot Point R2: 113
    Previous Daily Pivot Point R3: 113.35

 

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