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Forex: USD/JPY: edges lower after CPI data, BoJ rate decision up next

The USD/JPY is edging slightly lower during Asia trade, down 15 pips at 99.17. The Bank of Japan released its most recent CPI figures earlier in the session, with the print coming in at -0.9%. Before the release, the pair was trading around 99.34 but quickly dropped to 99.13 where is attempting to consolidate. Market participants will be focused on the Bank of Japan rate decision due out a bit later at 2:00 GMT

According to analysts at FXStreet.com, "The BOJ will announce its monetary policy decision later today. The time of the statement normally comes between 3.30 - 5.30GMT, but since no new policies are expected to be announced, it suggests no major delays. While the shocking shift in policies announced on April 4 still resounds vividly in the marketplace, main reason to think the BoJ will stay pat buying time to see the effects in price levels, what is expected is a formal time-frame to achieve the 2% inflation target.”

The technical picture remains the same as traders focus on the upper (100) and lower (98.40) of the recent consolidation pattern. According to Val Bednarik of FXStreet.com, Barely changed from the American session opening, the USD/JPY continues finding short term resistance in its 100 SMA a few pips above current level in the hourly chart. A slightly bearish tone persists as the pair failed to break above 100.00 discouraging buyers in the pair, although there are no signs current trend is over, and dips are still seen as buying opportunities.“

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