The USDJPY picked up a bid as the Bank of Japan (BOJ) maintained the long-term yield target of around zero percent and made its ultra-easy policy framework more sustainable. The following 31 July USDJPY Technical Analysis shows what level the pair trades currently.
31 July, GKFX – As of writing, the currency pair is trading at a session high of 111.43, having clocked a session low of 110.73 earlier today.
BOJ makes its yield curve control policy more flexible
Speculation had gathered pace in the last two weeks that the BOJ might raise the long-term yield target or reduce QE purchases to make the policy more sustainable.
Consequently, USDJPY fell below the uptrend from March last week, weakening the bull case.
However, the central bank’s decision to keep yield target unchanged has reinforced the view that the ultra-loose monetary policy will remain in place as long as inflation remains well below its 2 percent objective. As a result, the JPY is being offered across the board.
The USDJPY could rise further if the US core personal consumption expenditure (core PCE), due today at 12:30 GMT, betters estimates.
31 July USDJPY Technical Analysis
Resistance: 111.48 (10-day moving average), 112.20 (July 16 low), 113.18 (July 19 high)
Support: 111.00 (psychological support), 110.57 (50-day moving average), 110.06 (200-day moving average).
This article 31 July USDJPY Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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