The Bank of Japan policy meeting concluded with a positive note about Japan’s economy, while keeping the interest rate steady. How did the BoJ meeting impact USDJPY?
27 April, ADS Securities – The Japanese Yen recorded marginal gains against the US Dollar in the previous session as the US President’s proposed tax plan provided very limited details and did not specify how would the deficit be paid for.
How did the BoJ meeting impact USDJPY?
Currently, the price action appears to be slightly bearish on the 1H chart as the Bank of Japan (BoJ) kept its benchmark interest rate unchanged and upgraded its economic growth forecast for the 2017-18 fiscal year.
Furthermore, a potential negative centreline crossover by the MACD, further confirms the bearish outlook. Key technical support is located at the 110.90 where EMA 55 is placed, followed by the 110.60 and 110.25 levels. If the latter fails to hold, it might lead to further bearish momentum in the pair. On the flipside, key resistance is positioned at the 111.45 level, followed by the 111.60 and 111.80 levels.
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